‘We Fucked Up’: MEXC Exec Promises Changes After Blowup Over Frozen Crypto Millions

The centralized exchange MEXC has apologized for freezing the funds of a crypto whale for months, releasing its $3 million back to him and admitting that he handled the situation badly.

Pseudonymous trader and crypto influencer The White Whale had his $3 million MEXC account suspended in July. The exchange he told her that he had placed two orders in the same second, which he said implied that he was not trading manually, had broken his terms of service, and the funds should be lost. However, he rejected these claims.

The White Whale was then on social media countryside to recover his funds, with the chain sleuth pseudonym ZachXBT recently coming to his defense. After an audience back and forth between the trader and MEXC, the exchange caved.

“We screwed up. We apologize to The White Whale, and his money has already been released. He can claim at any time,” Cecilia Hsueh, CSO of MEXC, wrote about X. “I messed up in communication with him. I was emotional, and I didn’t have it.”

She added that after the incident, MEXC is working to create a “fast-track channel” to resolve outstanding account issues. The white whale claims having been notified of hundreds of cases of other traders with “indefinite freezes without access to their funds”.

“[It] it took some time and a lot of hate to get it done. 100% sure this tweet wouldn’t exist if it was someone with 100 followers,” the pseudnymous trader Joji. wrote about X.

“You’re not wrong,” Hsueh he answered. “It takes a lot to wake up the whole company. We’re working to make sure this doesn’t happen again.”

She explains that part of the problem is the result of growing pains, scaling from a “very small exchange” to a top 10 exchanges by volume. Hsueh said MEXC’s “risk, operations and PR teams” have not kept up with this growth.

“We have to change that,” Hsueh said. “I led the leadership team to recognize the problems, identify the changes we need to make, and improve our transparency. After this, they are listening, and everyone recognizes that MEXC has to change.”

Meanwhile, CryptoQuant data shows that Bitcoin withdrawals on the exchange spiked from 40 per day to 1,237 every day in mid-July—around the time that The White Whale’s funds were frozen. Withdrawals were high, processing 1,200 withdrawals daily on Thursday – and 1,450 on Friday at 4 PM ET.

Users on social media now they claim that they cannot withdraw funds from the exchange, while others say that they are in the same situation that the White Whale was in.

“I had millions on MEXC. And lately, I had the same exact problem and false allegations. I solved everything after 14 days of waiting. Now I can no longer trust,” the crypto trader Elja. wrote about X.

“MEXC was very nice to me when I boarded hedge funds and institutional companies, then stopped being nice after blocking all my [requests] for more than 365 days without explanation and without the possibility to interact with customer support to provide evidence or ask for clarification,” another user he answered.

MEXC did not respond DecryptRequest for comment regarding the high levels of Bitcoin withdrawals that have been recorded.