Cryptocurrency exchange MEXC has issued a public apology after freezing $3 million belonging to a well-known trader known as The White Whale, admitting to mishandling the matter and releasing the funds after months of public backlash.
Key points to remember:
- MEXC has apologized after wrongly freezing $3 million from trader ‘The White Whale’.
- The issue gained attention after on-chain investigator ZachXBT intervened, prompting MEXC leaders to issue a public statement.
- MEXC plans to launch a “fast-track channel” for dispute resolution as part of its efforts to address transparency and operational issues.
The incident began in July, when MEXC froze the trader’s account, saying he had violated its terms of service by placing two orders in the same second, which the exchange interpreted as automated trading.
The exchange told him the funds would be confiscated, but The White Whale denied the accusation and began publicly pressuring the company to return his money.
MEXC admits fault, apologizes to trader after ZachXBT intervenes
After weeks of silence, the situation escalated when the channel’s prominent investigator ZachXBT publicly defended the trader, amplifying calls for accountability.
On Thursday, Cecilia Hsueh, MEXC’s director of strategy, released a statement admitting wrongdoing.
“We screwed up. We apologize to The White Whale, and his money has already been released. He can claim it back at any time,” Hsueh wrote. “I botched my communication with him. I got emotional and I shouldn’t have.”
Following the apology, Hsueh said MEXC plans to establish an “expedited channel” to resolve similar account disputes.
The White Whale claimed that hundreds of users had contacted it with reports of frozen accounts and inaccessible funds.
The controversy also sparked strong criticism from other traders. “It took a long time and a lot of hatred to get you to do it.
I’m 100% sure this tweet wouldn’t exist if it had 100 followers,” wrote pseudonymous trader Joji.
Hsueh responded candidly: “You’re not wrong. It takes a lot to wake up the entire company. We’re working to ensure this doesn’t happen again.”
Hsueh said MEXC’s internal problems stem from “growing pains,” explaining that although the exchange has grown from a small operation to a top 10 exchange by volume, its risk management, operations and public relations teams “have not kept up with that growth.”
She added: “We are going to change this… The leadership team now recognizes that MEXC needs to improve its transparency. »
Bitcoin withdrawals from Mexico increase 30-fold after white whale controversy
At the same time, CryptoQuant data shows that Bitcoin withdrawals from Mexico increased significantly, from around 40 per day to 1,237 per day in mid-July, coinciding with the freezing of The White Whale’s funds.
Withdrawals remained high this week, with more than 1,400 processed on Friday.
Some users now claim to be facing similar issues. “I had the same problem and false allegations,” wrote trader Elja.
“The problem was resolved after 14 days, but I can no longer trust it.” Others accused MEXC of ignoring withdrawal requests for more than a year, highlighting a growing trust deficit between the exchange and its users.
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