Crypto Trader Fights MEXC's Frozen Funds With $2M NFT Rebellion

A pseudonymous cryptocurrency trader, known as the White Whale, has launched a $2 million social media campaign targeting MEXC, alleging that the centralized cryptocurrency exchange (CEX) froze approximately $3.1 million of their personal funds in July 2025. The trader claims there was no violation of the platform’s terms of service and that the freeze occurred despite having completed advanced Know Your Customer (KYC) verification. MEXC reportedly informed the user that the review process could take up to 12 months to resolve, with no updates or documentation provided during this time [1].

The trader alleges that the freeze was a result of being “too profitable,” asserting that their trading performance consistently outperformed MEXC’s external market makers—entities that provide liquidity through continuous buy and sell orders. According to the White Whale, this performance triggered the exchange’s risk control mechanisms, leading to the imposition of withdrawal restrictions. The trader also claims that MEXC’s global head of customer service offered them an “exclusive invitation” to travel to Malaysia for in-person communication with the leadership team to expedite the resolution [1].

To amplify the issue and pressure MEXC, the trader initiated a campaign requesting crypto users to mint a free non-fungible token (NFT) on the Base network, tag MEXC or its chief operating officer’s X account with the hashtag FreeTheWhiteWhale, and change their profile picture to a specific image. If MEXC unfreezes the funds, $1 million of the bounty will be distributed equally among the first 20,000 NFT holders, awarding each participant $50 USDC. Another $1 million will be donated to verified charities, with the trader committing to provide on-chain receipts of the donations [2].

The trader highlighted that this situation is not isolated, noting that many other traders have experienced similar account freezes after achieving high returns. This aligns with research from Acheron Trading, which found that 78.5% of new crypto token launches between April and June 2024 disrupted fair price discovery, while 69.9% of primary token listings were “parasitic,” meaning market makers exploited pre-market conditions to create artificial scarcity and hype [1].

MEXC’s spokesperson responded to the allegations by stating that the exchange strictly adheres to risk management policies and does not freeze assets without valid reasons. The spokesperson added that the 12-month review period applies only to accounts involved in coordinated violations or high-risk activities. They also mentioned that MEXC has enhanced its risk control measures to ensure compliance and security. However, the spokesperson did not directly address the claim that the trader was asked to travel to Malaysia to resolve the issue [1].

This is not the first time MEXC has faced allegations of unfairly freezing user assets. In March 2025, a user named Pablo Ruiz reported that over $2 million worth of Tether (USDT) stablecoin was frozen without prior notice or explanation. Ruiz described receiving automated responses from the exchange, including one stating that the account review would take 365 days [1].

Source:

[1] Crypto trader claims MEXC asked them to fly to Malaysia ... (https://cointelegraph.com/news/mexc-tells-trader-meet-in-person-recover-frozen-funds)

[2] $3M Frozen by MEXC? Trader Strikes Back With $2M ... (https://www.cryptotimes.io/2025/08/25/3m-frozen-by-mexc-trader-strikes-back-with-2m-campaign/)