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MEXC has returned $3 million in frozen crypto to a trader, The White Whale, following weeks of public criticism.
Author: Sahil Thakur
1st November 2025 – MEXC has returned $3 million in frozen crypto to a trader, The White Whale, following weeks of public criticism. The White Whale had accused the exchange of unfairly locking their funds without clear explanation.
The conflict began in July 2025. MEXC froze White Whale’s account, citing vague “risk control” reasons. The trader, who has over 56,000 followers on X, went public in August, claiming no wrongdoing. He said he never used trading bots or privileged APIs. His only “offense,” according to him, was being profitable.
As the story gained traction, other users came forward with similar complaints. Some claimed their accounts were frozen too. Crypto investigator ZachXBT also raised concerns about MEXC’s unclear ownership structure.
On October 31, MEXC Chief Strategy Officer Cecilia Hsueh publicly apologized. She admitted the exchange had mishandled the situation. In a post on X, she said:
“We messed up. Our operations, risk, and PR teams haven’t kept pace with our growth. But we’re fixing it.”
Hsueh said she had pushed internally for change since joining two months ago. Her efforts, combined with the public backlash, led MEXC’s board to take the issue seriously.
She also confirmed that MEXC would create a “fast-track channel” to help other users recover frozen assets. The feature was set to launch the next day.
White Whale confirmed he had received the $3 million. Instead of keeping it, he announced plans to donate the full amount. Half will go to early supporters of his campaign. The rest will be given to nonprofit organizations.
He plans to launch a transparent system for users to claim their share or vote on donations. “It never felt right to take the money back just for myself,” he wrote.
As promised, he redistributed every cent:
The case has sparked broader conversations about centralized exchange practices. Critics say unclear risk controls and poor communication harm users. This incident now serves as a high-profile example of public pressure forcing change.
MEXC faced $39 million in outflows on the day of the apology, showing that user trust remains fragile. Still, the company’s leadership now appears more open to reform.
White Whale summed up the moment: “The battle is won. But the war for user rights in crypto is far from over.”
After rumours of insolvency started circulating on X, MEXC’s official handle released a post saying that MEXC remains in a strong financial position.
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