Published On: Wed, 07 Jan 2026 16:10:11 GMT

MEXC Internal Trading Accusations Surface During White Whale Token Launch

MEXC internal trading accusations emerge after claims the exchange traded against users during the White Whale perpetuals launch.

Akshat Thakur News

Jan 7, 2026

Author: Akshat Thakur

January 7, 2026 — MEXC internal trading accusations have resurfaced after claims that the centralized exchange traded against its own users during the launch of White Whale perpetual futures, reigniting concerns around transparency and conflicts of interest in centralized crypto markets.

High Signal Summary For A Quick Glance

📌 Key Takeaways 👥 Who Is Impacted 📊 Implications

Exposes CEX conflicts of interest, including the potential role of internal trading desks.
Draws parallels to FTX-style dynamics, raising concerns around custody, transparency, and user fund safety.
Strengthens the case for DEX adoption as a more transparent venue for fair execution and price discovery.
Highlights how social media pressure can accelerate accountability and force issues into public scrutiny.

Retail traders facing unfair losses from potentially manipulated trades on MEXC.
Long-term holders dealing with eroded trust around $WhiteWhale listings and exchange-side integrity.
Institutions exposed to higher compliance and counterparty risk when operating through MEXC platforms.
Builders and launch teams who may avoid MEXC for future token listings and launches due to reputational risk.

🟢 Short term: FUD may drive MEXC withdrawals and $WhiteWhale volatility

The Talk

Real voices. Real reactions.

KOLs

Media

Community

@TheWhiteWhaleV2 @MEXC_Official @Bybit_Official You really want to go with "conflict of interest" on this? With an opening paragraph about "We’re ... adjusting on-chain liquidity in real time, and coordinating with our team handling CEX-side liquidity"?

🚨 Warning - @MEXC_Official Caught "Red-Handed" Running Internal Order Desk 🚨 Imagine this: I’m at the command post, monitoring our live launch on @Bybit_Official (which is a pretty big deal). We’re tracking order flow, adjusting on-chain liquidity in real time, and https://t.co/aZoQ7fx0Gf

01:18 AM·Jan 7, 2026

@TheWhiteWhaleV2 @MEXC_Official @Bybit_Official Wild read you really said ‘don’t trust, verify and meant it 🫡. Curious, how common do you think this is across other CEXs?

11:30 PM·Jan 6, 2026

@TheWhiteWhaleV2 @MEXC_Official @Bybit_Official I am not surprised. Thanks for sharing… I see this wallet all over pump tokens. Anyone know who it is? https://t.co/MRacooLlJZ

10:49 PM·Jan 6, 2026

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🟡 Long term: Could accelerate CEX reforms and broader DeFi growth

🔴 Key risk: Unresolved claims may trigger lawsuits and deepen market distrust

Background on White Whale and Market Context

White Whale is a Solana-based meme token launched in October 2025 via Pump.fun. Initially created as a satirical response to perceived institutional manipulation in crypto markets, the token gained traction through community-driven narratives and visibility from its associated KOL.

After a weak start, White Whale saw a sharp revival later in 2025, rising more than 500x at its peak and reaching a market capitalization of roughly $57 million. This rapid growth made it a high-risk candidate for leveraged trading products such as perpetual futures.

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What Triggered the MEXC Internal Trading Accusations

The MEXC internal trading accusations began when the exchange unexpectedly listed White Whale USDT perpetual futures ahead of other major venues. According to TheWhiteWhaleV2, MEXC went live before Bybit and did so without routing liquidity through its usual external market makers.

After investigating MEXC’s API, the trader claimed the pair remained unsupported for more than five hours, despite active trading. This raised concerns that MEXC may have internally managed pricing and liquidity during that period.

The post argued that such conditions create an inherent conflict of interest, stating that “a market cannot be fair when the referee is also placing bets.”

Exchange / Project
Description of Accusation
Outcome or Related News

      MEXC
    
      Accused of running an internal order desk trading against users during the $WhiteWhale perpetuals launch on January 6, 2026. API access was reportedly unavailable for hours, suggesting possible self-trading activity.
    
      No official response yet. Allegations echo a 2025 incident involving a $3.1M freeze from @TheWhiteWhaleV2, later resolved with an apology and procedural reforms.
    
      FTX
    
      Alameda Research, an affiliated trading firm, allegedly traded against FTX users using misappropriated customer funds, creating severe conflicts of interest and insider trading.
    
      Exchange collapsed in 2022. Sam Bankman-Fried sentenced to 25 years in prison; lawsuits and asset recovery efforts remain ongoing.
    
      Binance
    
      CFTC alleged that over 300 internal “house accounts” linked to CZ traded against users, blurring boundaries between exchange operations and proprietary trading.
    
      In 2023, Binance pled guilty to money laundering violations; CZ stepped down as CEO. Regulatory scrutiny continued through 2025.
    
      BitMEX
    
      Accused of trading against customers through internal desks as part of a broader pattern of exchange manipulation allegations.
    
      Founders pled guilty to charges in 2020. Platform continues operating but with significantly reduced market dominance.
    
      Bitfinex
    
      Alleged internal trading conflicts and close ties with Tether, alongside a history of user fund and transparency issues.
    
      Settled with the New York Attorney General in 2019; continues operating amid ongoing scrutiny and controversy.
    
      Abra
    
      Accused of trading against customers through internal mechanisms and engaging in regulatory violations.
    
      Faced regulatory scrutiny between 2020 and 2023; later pivoted toward more compliant operational models.

Previous Disputes Between MEXC and TheWhiteWhaleV2

The MEXC internal trading accusations follow earlier public disputes between the exchange and TheWhiteWhaleV2. In July 2025, MEXC froze approximately $3.1 million linked to the trader, citing automated trading violations.

After months of public pressure and community backlash, MEXC released the funds in November 2025 and issued an apology. The latest allegations have revived skepticism among traders who view the incidents as part of a broader pattern of opaque exchange behavior.

Broader Industry Implications of MEXC Internal Trading Accusations

The allegations mirror long-standing concerns about centralized exchanges operating proprietary trading desks alongside retail platforms. Past collapses and enforcement actions have shown how blurred lines between exchange operations and trading arms can undermine market fairness.

As crypto markets stabilize in 2026, episodes like this may accelerate migration toward decentralized trading venues, where onchain transparency reduces reliance on trust-based intermediaries.

FAQs MEXC White Whale Perpetuals Allegations

What is MEXC being accused of?

MEXC is accused of managing White Whale perpetuals internally and potentially trading against its own users during launch.

Did MEXC confirm these allegations?

No. MEXC has not issued a public statement addressing the claims.

Why is internal trading controversial?

When an exchange trades against users, it creates conflicts of interest and undermines market fairness.

Is this similar to the FTX collapse?

Critics draw comparisons, but no evidence currently suggests misappropriation of user funds.

What does this mean for traders?

It highlights ongoing transparency risks on centralized exchanges and reinforces the appeal of onchain trading alternatives.

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MEXC Internal Trading Accusations Surface During White Whale Token Launch

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Background on White Whale and Market Context

What Triggered the MEXC Internal Trading Accusations

MEXC

FTX

Binance

BitMEX

Bitfinex

Abra

Previous Disputes Between MEXC and TheWhiteWhaleV2

Broader Industry Implications of MEXC Internal Trading Accusations

FAQs MEXC White Whale Perpetuals Allegations

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