Cryptocurrency exchange MEXC released $3 million in frozen funds back to a prominent trader Friday, ending a four-month dispute that played out publicly on social media and raised questions about the platform's withdrawal practices.
Pseudonymous crypto influencer The White Whale had his MEXC account suspended in July after the exchange accused him of placing two orders within the same second, claiming this violated terms of service by suggesting automated rather than manual trading. The White Whale disputed the allegations but was unable to access his funds for months.
We Did It - Public Outcry Forces MEXC To Do The Right Thing
— The White Whale (@TheWhiteWhaleV2) October 31, 2025
I didn't have a draft statement for this occasion, as I honestly never expected it to come.
I did see the public apology, and while appreciated, it didn't specify what they were apologizing for. Implying I was a… pic.twitter.com/5qKLLPPXSd
The trader launched a sustained social media campaign to recover his assets, eventually drawing support from pseudonymous onchain investigator ZachXBT. Following escalating public pressure, MEXC relented.
"We fucked up. We apologize to The White Whale, and his money is already released," wrote Cecilia Hsueh, MEXC's chief strategy officer, on X. "I messed up in communicating with him. I got emotional, and I shouldn't have."
Hsueh, who joined MEXC in September from layer-2 blockchain Morph where she was co-founder and CEO, acknowledged that the resolution likely wouldn't have occurred without The White Whale's substantial following. When trader Joji suggested the outcome hinged on the influencer's social media reach, Hsueh concurred: "You're not wrong. It takes a lot to wake up the whole company."
The White Whale claims to have received reports of hundreds of similar cases involving indefinite account freezes. MEXC's withdrawal activity has spiked noticeably since mid-July, according to observers tracking the exchange's onchain movements.
Hsueh attributed the problems to growing pains as MEXC scaled into a top-10 exchange by trading volume. She said the platform's "risk, operations, and PR teams" failed to keep pace with rapid expansion.
"We're going to change that," Hsueh said, adding that MEXC plans to create a "fast-track channel" for resolving unresolved account issues. "I've been driving the leadership team to recognize the issues, identify changes we need to make, and improve on our transparency. After this, they're now listening, and they all acknowledge that MEXC has to change."
