Crypto trade MEXC has issued a public apology after freezing $3 million belonging to a widely known dealer generally known as The White Whale, admitting it mishandled the case and releasing the funds following months of public backlash.
Key Takeaways:
- MEXC apologized after wrongfully freezing $3 million from dealer “The White Whale.”
- The problem gained consideration after on-chain investigator ZachXBT intervened, prompting MEXC’s management to situation a public assertion.
- MEXC plans to launch a “fast-track channel” for dispute decision as it really works to repair transparency and operational points.
The incident started in July, when MEXC froze the dealer’s account, claiming he violated its phrases of service by putting two orders inside the identical second, which the trade interpreted as automated buying and selling.
The trade informed him the funds could be forfeited, however The White Whale denied the accusation and commenced publicly pressuring the corporate to return his cash.
MEXC Admits Fault, Apologizes to Dealer After ZachXBT Intervention
After weeks of silence, the state of affairs escalated when outstanding on-chain investigator ZachXBT publicly defended the dealer, amplifying requires accountability.
On Thursday, MEXC’s Chief Technique Officer Cecilia Hsueh issued a press release on X conceding fault.
“We fucked up. We apologize to The White Whale, and his cash is already launched. He can declare it at any time,” Hsueh wrote. “I tousled in speaking with him. I obtained emotional, and I shouldn’t have.”
Following the apology, Hsueh mentioned MEXC plans to determine a “fast-track channel” for resolving comparable account disputes.
In 10min
— Cecilia Hsueh (@cecilia_hsueh) October 31, 2025
The White Whale alleged that tons of of customers have contacted him with tales of frozen accounts and inaccessible funds.
The controversy has additionally drawn sharp criticism from different merchants. “It took some time and a bunch of hate to get you to do it.
100% positive this tweet wouldn’t exist if he had been somebody with 100 followers,” wrote pseudonymous dealer Joji.
Hsueh replied candidly: “You’re not improper. It takes quite a bit to get up the entire firm. We’re engaged on ensuring this doesn’t occur once more.”
Hsueh mentioned MEXC’s inner points stem from “rising pains,” explaining that whereas the trade scaled from a small operation to a top-10 trade by quantity, its danger, operations, and PR groups “haven’t stored up with this development.”
She added, “We’re going to vary that… The management crew now acknowledges that MEXC has to enhance its transparency.”
Danger management will not be making an attempt to steal your funds. dm.
— Cecilia Hsueh (@cecilia_hsueh) October 31, 2025
Bitcoin Withdrawals from MEXC Spike 30x After The White Whale Controversy
In the meantime, CryptoQuant information exhibits that Bitcoin withdrawals from MEXC surged dramatically, from round 40 per day to 1,237 day by day in mid-July, coinciding with the freezing of The White Whale’s funds.
Withdrawals remained elevated this week, with over 1,400 processed on Friday.
Some customers now declare they’re going through comparable issues. “I had the identical situation and false allegations,” dealer Elja wrote.
“It obtained solved after 14 days, however I can’t belief it anymore.” Others accused MEXC of ignoring withdrawal requests for over a 12 months, highlighting a rising belief deficit between the trade and its customers.
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