MEXC Trader Forced to Travel to Malaysia for In-Person KYC to Unfreeze $3.1M

A crypto trader has raised concerns over MEXC, alleging that the exchange required them to travel to Malaysia for an in-person KYC verification in order to unfreeze $3.1 million in funds [1]. This incident has sparked wider discussions around the transparency and user-friendliness of procedures employed by major exchanges when dealing with frozen accounts. The user, whose identity remains undisclosed, claims the request was made during a high-pressure situation, with no clear explanation for why in-person verification was necessary given the already existing digital KYC process.

The situation highlights potential vulnerabilities in the customer service frameworks of crypto exchanges, especially when dealing with large sums. MEXC has not officially commented on the specific case, but the incident underscores broader concerns about how exchanges handle frozen funds. In the volatile crypto market, the inability to access assets quickly can have severe financial consequences, especially for traders who rely on timely access to capital for daily operations.

The controversy also raises questions about the global logistics involved in resolving such issues. Requiring a trader to travel internationally for verification is not only costly but also impractical, particularly for those who may not have the means or flexibility to make such a trip. It further emphasizes the need for more standardized and accessible protocols that can be applied remotely, especially for high-net-worth users who may frequently engage with multiple exchanges across different jurisdictions.

The incident comes amid a broader period of scrutiny for crypto exchanges. Regulators around the world are increasing their focus on compliance, customer protection, and the transparency of operational practices. While KYC processes are essential for compliance, the way they are implemented can significantly affect user experience and trust in the platform. Users are increasingly demanding not only security but also efficiency and clarity in how their funds are managed and, in cases of freezing, how they can be quickly restored.

The trader’s claims have prompted calls for more accountability from MEXC and similar platforms. Advocates argue that exchanges should provide more detailed explanations for account freezes and offer alternative verification methods, particularly for verified and high-trust users. Transparency in communication, combined with a more flexible and user-centric approach, could help reduce such conflicts and build stronger user confidence in the long term.

Source: [1] Crypto trader claims MEXC told them to fly to Malaysia to do an in-person KYC check, amid a $3.1 million frozen fund debacle. (https://cointelegraph.com/news/mexc-tells-trader-meet-in-person-recover-frozen-funds)