White Whale Accuses MEXC of Freezing $3.1M Amid $2M Transparency Campaign

Generated by AI AgentCoin World
Monday, Aug 25, 2025 5:49 am ET1min read
USDC
--
Aime RobotAime Summary

- Pseudonymous trader "White Whale" alleges MEXC froze $3.1M post-KYC, launching a $2M bounty campaign for transparency and fund release.

- Campaign offers $1M via Base blockchain NFTs to 20,000 minters and $1M to verified charities with onchain receipts.

- Trader claims freeze stemmed from outperforming market makers, citing research showing 70% of listings may involve prelisting exploitation.

- Users advised to document activity, request written explanations, and escalate to compliance/legal teams if unresolved.

- Incident highlights exchange accountability gaps and growing use of decentralized tools to pressure platforms like MEXC.

A pseudonymous crypto trader known as the White Whale has alleged that MEXC froze $3.1 million in their account, prompting the trader to launch a $2 million bounty campaign to demand transparency and the release of the funds [1]. The trader claims the freeze occurred after completing Know-Your-Customer (KYC) procedures and has not received any documentation, charges, or updates from the exchange. The hold reportedly remains under a one-year review, with the exchange yet to provide a resolution [1].

In response, the White Whale has launched a social media and NFT campaign offering $2 million in

USDC
. The funds are split into two parts: $1 million to be distributed among the first 20,000 NFT minters on the Base blockchain, with each potentially receiving up to $50 if the funds are released, and $1 million designated for verified charitable organizations that will receive onchain donation receipts [1]. The campaign instructs participants to mint the NFT, tag MEXC or its Chief Operating Officer on social media using the hashtag FreeTheWhiteWhale, and update their profile images with provided artwork to amplify pressure on the exchange [1].

The trader also alleges that the account was frozen due to outperforming MEXC’s partnered market makers, suggesting exchanges may restrict accounts that consistently surpass liquidity providers. Market makers facilitate trading by placing buy and sell orders, and the trader claims their superior performance could have triggered the freeze. This allegation is supported by independent research from Acheron Trading, which found that 78.5% of new token launches between April and June 2024 disrupted fair price discovery, while 69.9% of listings were labeled “Parasitic,” suggesting potential prelisting exploitation by market makers [1].

Affected users are advised to document all account activity, confirm KYC compliance, and request a written explanation and timeline from the exchange. If unresolved, they are encouraged to escalate to compliance teams and consult legal counsel. Exchange terms of service and local regulations determine how long funds can be frozen, and users are recommended to seek formal timelines and regulatory citations from the platform [1].

The incident raises broader concerns about exchange transparency, user recourse, and the role of market makers in shaping trading environments. While public campaigns can increase reputational pressure on exchanges, they do not replace formal legal or regulatory remedies. The White Whale’s campaign highlights the growing reliance on decentralized tools and onchain mechanisms to assert claims and mobilize community support [1].

MEXC has not yet provided an official response to the allegations, and the trader’s claims remain unverified. As the situation develops, users are encouraged to remain informed and prepared to act on formal communications from the exchange [1].

Source: [1] Trader Alleges MEXC Froze $3.1M, Launches $2M Campaign Offering USDC Bounty (https://en.coinotag.com/trader-alleges-mexc-froze-3-1m-launches-2m-campaign-offering-usdc-bounty/)