Crypto Trader Blocked by MEXC, Demanded to Travel to Malaysia for $3.1M

A crypto trader, known as "The White Whale," has accused MEXC exchange of locking $3.1 million in their account and demanding a trip to Malaysia for in-person verification, despite already meeting KYC standards. The request has sparked outrage and raised concerns about MEXC's compliance practices and safety for traders. The trader declined, citing safety concerns and MEXC's unclear methods. MEXC has been criticized for its approach, which differs from other exchanges like Binance and Coinbase. The incident has led to a #FreeTheWhiteWhale campaign and increased scrutiny of MEXC's actions.

A prominent crypto trader, known as "The White Whale," has publicly accused MEXC exchange of freezing $3.1 million in their account and demanding an in-person verification trip to Malaysia, despite the trader already meeting Know Your Customer (KYC) standards. The trader's allegations have sparked outrage and raised concerns about MEXC's compliance practices and the safety of its traders.

The White Whale, who has claimed to outperform MEXC's external market makers, alleged that their funds were frozen due to being "too profitable." The trader has launched a $2 million social media pressure campaign, #FreeTheWhiteWhale, to demand the unfreezing of their funds. The campaign includes a bounty of $1 million in USDC for the first 20,000 NFT holders who mint a free token on the Base network and tag MEXC or its COO's X account with the campaign hashtag [1].

MEXC has been criticized for its approach, which differs from other major exchanges like Binance and Coinbase. The incident has led to increased scrutiny of MEXC's actions and raised questions about the exchange's compliance practices. The White Whale declined the exchange's demand for an in-person verification trip to Malaysia, citing safety concerns and MEXC's unclear methods [1].

The KYC process is a mandatory verification step implemented by financial institutions, including MEXC, to confirm the identity of their users. The process is crucial for preventing financial crimes such as money laundering and fraud. Traders who complete KYC verification gain access to enhanced security features, higher withdrawal limits, and additional trading privileges [2].

The White Whale's allegations have highlighted the importance of transparency and clear communication in the cryptocurrency industry. As the market continues to evolve, it is essential for exchanges to maintain high standards of compliance and ensure the safety of their traders.

References:
[1] https://cointelegraph.com/news/crypto-trader-launches-2m-campaign-after-mexc-freezes-3m-report?utm_campaign=rss_partner_inbound&utm_medium=rss&utm_source=rss_feed
[2] https://www.mexc.com/crypto-pulse/article/arc-trading-kyc-100