MEXC Admits Mistake, Unfreezes $3.1M of Trader “The White Whale” After Public Scandal
Crypto exchange MEXC has officially unblocked $3.1 million belonging to the trader known as The White Whale, following a heated public dispute and mounting community pressure.
The company’s Chief Strategy Officer, Cecilia Hsueh, publicly admitted the exchange had made a mistake, writing:
“We messed up and apologize to The White Whale. His funds have been released — he can withdraw them anytime.”
How the Dispute Began
Between January and April 2025, The White Whale began trading futures on MEXC. By June, he had reportedly turned a small deposit into nearly $5 million in profit.
However, in July, the exchange froze his account, citing “risk control” and alleged “bot usage.” Despite the trader completing full KYC and AML verification, MEXC refused to release the funds.
Public Backlash and ZachXBT’s Involvement
The situation escalated on October 10, when renowned blockchain investigator ZachXBT publicly supported The White Whale, accusing MEXC of targeting profitable traders. His post went viral, sparking widespread criticism of the exchange’s internal policies.
In response, MEXC’s Cecilia Hsueh promised reforms, including greater transparency, daily audits, and a maximum freeze duration of 180 days.
Turning Point and Resolution
Despite ongoing negotiations and heated exchanges, MEXC eventually acknowledged its error on October 31, unlocking the trader’s account and funds.
On-chain analytics firm Arkham confirmed the wallet activity, verifying that the funds had indeed been released.
Aftermath: Withdrawals Surge
Following the announcement, CryptoQuant recorded a significant spike in withdrawals from MEXC, as traders reacted cautiously to the scandal.
While MEXC’s admission was praised as a step toward accountability, analysts note that trust recovery may take time as the exchange faces scrutiny over its internal risk management practices.
