MEXC Requests Crypto Trader to Travel to Malaysia to Release $3.1M in Questionable Transaction

MEXC Global has requested that a prominent crypto trader referred to as “The White Whale” travel to Malaysia for an in-person verification to access over $3.1 million in frozen assets.

This request was made despite the trader having already fulfilled several KYC requirements, which included live video verification, proof of address, and confirmation of phone number.

Derrick, the exchange’s Global Head of Customer Service, personally issued the invitation, proposing a “VIP experience” and luxurious accommodations while emphasizing that face-to-face meetings are essential to finalize the verification process.

Update: MEXC Attempts To Lure The White Whale To Meet In Person…For Potentially Sinister Reasons??
I received an email from MEXC (with my anti-phishing code and from their official domain). I triple-verified – it was authentic.
The email claimed:
“Our leadership team…

— The White Whale (@TheWhiteWhaleHL) August 25, 2025

Security Concerns Mount as Crypto Kidnappings Rise Globally

This contentious demand arises amidst increasing worries regarding crypto-related kidnappings and the security threats faced by high-net-worth individuals.

The White Whale, who asserts possession of over $100 million in on-chain assets, declined the meeting request, citing personal safety concerns and pointing out that MEXC’s Terms of Service do not stipulate in-person KYC procedures.

MEXC froze the trader’s account in July 2025 under ambiguous “risk control” protocols without prior notification or a clear rationale.

When the trader expressed hesitance about traveling, Derrick’s reply was revealing: “But I understood that you have sought to expedite the unfreezing of your account,” effectively tying access to funds to the meeting in Malaysia.

The incident has led to significant backlash on social media under the hashtag #FreeTheWhiteWhale, with numerous users reporting similar account freezes and fund confiscations by MEXC.

Exchange Doubles Down Despite Missing Legal Basis for In-Person Demands

MEXC’s insistence on in-person verification lacks support in their publicly available terms of service, raising concerns about the exchange’s compliance practices.

After the Malaysia meeting was declined, Derrick proposed Hong Kong as an alternative venue, asserting it would be “one of the safest countries” for the meeting.

The exchange representative acknowledged the unusual nature of their request, stating, “this is indeed not a usual process, but I am really trying to help out for your appeal.”

He described the in-person meeting as part of a “manual verification process as an exception” to assist with the fund release appeal.

The White Whale has already undergone extensive verification processes accepted by MEXC during earlier assessments, including liveness checks, address verification, and phone number confirmation.

Source: X/@TheWhiteWhaleHL

The trader highlighted having submitted all necessary documentation and questioned the emergence of additional verification requirements without adequate justification.

MEXC’s approach sharply contrasts with standard industry practices, where remote KYC procedures are generally sufficient for account verification and fund access.

The exchange’s failure to reference specific terms of service provisions that support their demands undermines the validity of their verification requirements.

The situation intensified as MEXC sought to frame the meeting as an opportunity for collaboration, with Derrick mentioning “enhanced trading perks” and “exciting partnership opportunities” alongside the verification process.

However, the trader remained focused exclusively on recovering funds and closing the account rather than pursuing ongoing business relationships.

Pattern of Account Freezes Emerges as Users Report Similar Treatment

Numerous MEXC users have reported similar experiences involving arbitrary account freezes and dubious fund recovery processes.

Pablo Ruiz documented losing access to $2.08 million USDT after his account was frozen on April 17, 2025, under “risk control” protocols without clear explanation or appeal options.

On April 17, 2025, @MEXC_Official froze my account due to a vague “risk control” protocol, without prior notice, explanation, or any opportunity to cooperate. Since then, nearly 3 months have passed, and my funds — totaling $2,082,614 USDT — remain fully inaccessible.… pic.twitter.com/ZCCVpqSgRh

— Pablo Ruiz (@pabloruizoka) July 13, 2025

MEXC informed Ruiz that his account review would take 365 days, instructing him to “contact us again on 04/17/2026.”

The exchange provided conflicting information, at one point asserting that the risk control process was completed while support maintained that the review was still in progress.

Previous incidents from 2024 included allegations of “clawback” where MEXC reportedly reversed profitable trades and seized funds from user accounts.

Trader “Al Gore Rhythms” had $33,658 deducted from his spot account, with MEXC claiming they had “taken measures to recover the losses incurred” due to “abnormal trading activities.”

Another case involved CoackKCrypto, who alleged MEXC confiscated $330,000 “due to abnormal profit” without clear justification or due process.

Users reported that MEXC deleted transactions from their history and provided automated responses instead of substantial explanations for enforcement actions.

The offshore exchange operates with less regulatory scrutiny than publicly listed U.S. companies, which may contribute to inconsistent enforcement practices.

Multiple enforcement agencies continue to investigate various offshore exchanges following the FTX collapse, while users increasingly question custodial risks associated with centralized platforms that lack transparent dispute resolution mechanisms.

At the time of publication, the MEXC team has neither released the funds nor provided any clarity on the situation.

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