MEXC Issues Apology Following Incorrect Freezing of $3 Million Belonging to Crypto Investor ‘The White Whale’

Crypto exchange MEXC has publicly apologized after freezing $3 million belonging to a prominent trader known as The White Whale, acknowledging its mishandling of the situation and releasing the funds following months of public outcry.

Key Takeaways:

• MEXC issued an apology after incorrectly freezing $3 million from trader “The White Whale.”
• The matter gained traction after on-chain investigator ZachXBT intervened, leading MEXC’s management to release a public statement.
• MEXC intends to introduce a “fast-track channel” for dispute resolution as it seeks to enhance transparency and operational practices.

The incident began in July when MEXC froze the trader’s account, alleging that he breached its terms of service by placing two orders simultaneously, which the exchange interpreted as automated trading.

The exchange informed him that the funds would be forfeited, but The White Whale refuted the claim and began to publicly pressure the company for the return of his funds.

MEXC Acknowledges Mistake, Apologizes to Trader Following ZachXBT Intervention

After several weeks of silence, the situation intensified when notable on-chain investigator ZachXBT publicly supported the trader, increasing demands for accountability.

On Thursday, MEXC’s Chief Strategy Officer Cecilia Hsueh released a statement on X admitting fault.

“We made a mistake. We apologize to The White Whale, and his funds have already been released. He can retrieve them at any time,” Hsueh stated. “I mishandled communication with him. I became emotional, which was inappropriate.”

Following the apology, Hsueh mentioned that MEXC plans to create a “fast-track channel” for addressing similar account disputes.

In 10min

— Cecilia Hsueh (@cecilia_hsueh) October 31, 2025

The White Whale claimed that numerous users have reached out to him with accounts of frozen assets and inaccessible funds.

The controversy has also attracted significant criticism from other traders. “It took a while and a lot of backlash to prompt this action.

100% certain this tweet wouldn’t exist if he had only 100 followers,” remarked pseudonymous trader Joji.

Hsueh responded openly: “You’re correct. It requires considerable effort to alert the entire company. We are focused on ensuring this does not recur.”

Hsueh explained that MEXC’s internal challenges arise from “growing pains,” noting that while the exchange expanded from a small operation to a top-10 exchange by volume, its risk, operations, and PR teams “have not kept pace with this growth.”

She added, “We are committed to changing that… The leadership team now recognizes that MEXC must enhance its transparency.”

Risk control is not an attempt to seize your funds. dm.

— Cecilia Hsueh (@cecilia_hsueh) October 31, 2025

Bitcoin Withdrawals from MEXC Surge 30x Following The White Whale Controversy

In the meantime, CryptoQuant data indicates that Bitcoin withdrawals from MEXC skyrocketed, increasing from approximately 40 per day to 1,237 daily in mid-July, coinciding with the freezing of The White Whale’s assets.

Withdrawals have remained high this week, with over 1,400 processed on Friday.

Some users now report experiencing similar issues. “I encountered the same problem and false accusations,” trader Elja stated.

“It was resolved after 14 days, but I no longer trust it.” Others have accused MEXC of neglecting withdrawal requests for over a year, underscoring a growing trust deficit between the exchange and its users.

The post MEXC Apologizes After Wrongfully Freezing $3M From Crypto Whale ‘The White Whale’ appeared first on Cryptonews.