MEXC Asks Trader to Travel for In-Person Verification of Frozen $3.1M

A crypto trader, known as “White Whale,” claims that MEXC requested them to travel to Malaysia for in-person verification in order to unfreeze $3.1 million in assets held on the exchange [1]. The trader shared screenshots of internal communications with MEXC’s global customer service team, which reportedly included an “exclusive invitation” to engage in an “in-depth communication with the leadership team” about the frozen funds. The move, if accurate, would be highly unusual, as standard KYC processes are typically conducted online through document submission and digital verification methods.

According to the trader, MEXC also attempted to offer potential partnership opportunities and trading incentives to encourage them to comply with the request [1]. However, the trader rejected the offer, citing safety concerns and criticizing the exchange for using coercive tactics. They also raised broader concerns about the risk of “crypto kidnappings,” highlighting the danger of traveling to a foreign country under such circumstances.

MEXC has not directly addressed the claim but has stated that it “strictly adheres to risk management policies and does not freeze assets without valid reasons,” according to a spokesperson [1]. The exchange cited potential violations such as price manipulation, wash trading, and fraudulent trading as possible triggers for account freezes. Despite this, the trader insists that all necessary KYC steps—including face verification and address confirmation—have already been completed, and the exchange’s terms of service make no mention of in-person verification [1].

To pressure MEXC into releasing the funds, the trader launched a social media campaign involving a $2 million bounty tied to the release of the frozen assets. The campaign involves minting a free NFT on the Base network and tagging MEXC or its COO on X with the hashtag “FreeTheWhiteWhale.” If successful, the bounty will be distributed among the first 20,000 NFT holders [1].

This incident is not isolated. Another MEXC user, Pablo Ruiz, reported having over $2 million in Tether frozen in April without prior notice or explanation, and was met with automated responses stating that the account review would last until 2026 [1]. These cases raise broader questions about the transparency and fairness of fund freezes and the adequacy of user communication during account reviews.

The controversy underscores growing concerns about the balance between regulatory compliance and user convenience in the cryptocurrency industry. While exchanges argue that enhanced KYC and AML measures are necessary, critics say these practices can become burdensome and exclusionary, particularly for users who lack the means or time to fulfill unusual verification requests [1].

Source: [1] title1.............................(https://cointelegraph.com/news/mexc-tells-trader-meet-in-person-recover-frozen-funds)