Trader Alleges MEXC Frozen $3.1M and Suggested Malaysia Meeting for Release

A trader has alleged that MEXC, a major cryptocurrency exchange, froze $3.1 million in their account and offered an in-person meeting in Malaysia to expedite the release of the funds. The trader, known online as “White Whale,” claims they completed online KYC (Know Your Customer) procedures, including face verification and proof of address, but were still placed under a freeze. They rejected the invitation to travel to Malaysia, citing safety concerns and completed online verifications as sufficient [1].

MEXC has responded by stating that it adheres strictly to risk management policies and only freezes assets for valid reasons such as price manipulation, wash trading, or fraudulent activity. However, the exchange did not confirm whether it offered the in-person meeting in Malaysia, nor did it provide a detailed explanation for the freeze [1]. This response has left the trader and some other users frustrated, as they report similar “risk control” freezes without clear communication or resolution timelines.

The trader has taken an unusual public stance, launching a $2 million social pressure campaign using NFTs. The initiative involves minting a specific NFT on the Base network and distributing the bounty to holders if MEXC releases the funds. The campaign encourages participants to tag MEXC and its COO with the hashtag FreeTheWhiteWhale. This approach is designed to create visibility and pressure on the exchange to address the issue transparently [1].

Other users have reported similar experiences with MEXC, noting that their accounts were frozen under “risk control” reasons without clear explanations or timelines. One user described being placed under a multi-million USDT freeze and receiving only automated responses for over a year. These reports suggest that the issue may not be isolated, raising concerns about how MEXC handles user account restrictions [1].

In-person KYC verification is generally not standard practice for established cryptocurrency exchanges. Most KYC procedures are conducted remotely through identity documents, address verification, and biometric checks. The suggestion that a user must travel abroad to meet exchange staff is considered atypical and could raise legal and safety concerns, particularly for high-net-worth individuals [1].

Users who find their assets frozen are advised to document all communications with the exchange, confirm the completion of all required KYC steps, and request written explanations from the exchange. If unresolved, they should escalate the matter to compliance or legal teams within the exchange and consider seeking legal counsel experienced in crypto custody disputes [1].

While exchanges typically reserve the right to freeze funds under their terms of service—particularly in cases of suspected fraud, market manipulation, or sanctions risk—users should not be required to travel to resolve account issues. Remote verification processes should be sufficient, and any request for in-person meetings should be approached with caution [1].

The dispute underscores the ongoing tension between cryptocurrency exchanges' risk management protocols and user expectations of transparency and accessibility. As the situation develops, it may prompt broader discussions about user rights and the responsibilities of exchanges in handling frozen assets [1].

Source: [1] Trader alleges MEXC may have offered Malaysia meeting to expedite release of $3.1M; USDC bounty campaign emerges (https://en.coinotag.com/trader-alleges-mexc-may-have-offered-malaysia-meeting-to-expedite-release-of-3-1m-usdc-bounty-campaign-emerges/)