"White Whale's NFT Rebellion Challenges MEXC's In-Person KYC Demand"

A high-profile cryptocurrency trader, known by the pseudonym "White Whale," has escalated a $2.5 million social media campaign against MEXC, a leading global cryptocurrency exchange, over the issue of frozen funds. The trader claims MEXC froze $3.1 million of their assets without valid justification and refused to unfreeze them unless they flew to Malaysia for an in-person identity verification—a step that deviates from standard Know Your Customer (KYC) procedures typically conducted online. Screenshots of communications shared by the trader indicate that MEXC’s customer service team suggested an "exclusive invitation" to meet in Malaysia for "in-depth communication with the leadership team," while offering incentives like potential partnerships and "trading perks." The trader, however, rejected the offer, highlighting safety concerns and accusing MEXC of using coercive tactics to resolve the issue [1].

The campaign involves a decentralized social media effort where participants mint free non-fungible tokens (NFTs) on the Base network and tag MEXC or its chief operating officer’s X account using the hashtag FreeTheWhiteWhale. A total of $2.5 million in USDC has been pledged as a bounty, with $1 million to be split equally among the first 20,000 NFT holders if MEXC releases the frozen funds. An additional $250,000 is allocated for verified charitable donations, as stated by the trader in a public post [2]. The trader emphasized that this is not just a personal battle, but a broader effort to challenge what they describe as exploitative practices within the crypto industry.

MEXC, in response, has maintained that it adheres to strict risk management protocols and does not freeze assets without reason. A MEXC spokesperson told Cointelegraph that the exchange may take action against accounts engaged in price manipulation, wash trading, front-running, or other violations. However, the spokesperson did not directly address the trader’s claim that MEXC requested an in-person meeting to unfreeze their funds [1]. This is not the first instance of user complaints regarding frozen assets on MEXC. In April 2025, another user, Pablo Ruiz, reported that $2.08 million in Tether (USDT) was frozen without prior notice or explanation under a "risk control" protocol. Ruiz claimed to receive automated responses, including one stating that his account would remain under review for 365 days [2].

The issue of asset freezes and extended review periods has sparked broader concerns among the crypto community about transparency and fairness in exchange operations. The White Whale noted that MEXC’s Terms of Service do not mention in-person KYC verification, suggesting the exchange has failed to follow its own established rules. The trader also criticized the inconsistency in MEXC’s responses to user inquiries, citing Ruiz’s experience where a system-generated message claimed the risk control process was completed, yet support continued to insist the review was ongoing [2].

MEXC has publicly defended its risk control and compliance measures, announcing in August 2025 that it had restricted 17,464 suspicious accounts in July and August—representing a 62% decline compared to previous periods—through enhanced AI-based monitoring systems. The exchange also emphasized its efforts to combat bot trading, restricting 2,008 such accounts between July and August, a 24% increase from earlier months. Tracy Jin, MEXC’s COO, stated that these measures are part of the exchange’s broader commitment to "user asset security and market fairness," citing the launch of a global initiative called "Proof of Trust" to improve transparency and user trust [3].

Source:

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

[2] Cointelegraph (https://cointelegraph.com/news/mexc-frozen-funds-white-whale-campaign)

[3] Theblock (https://www.theblock.co/press-releases/368261/mexc-strengthens-risk-control-and-compliance-to-safeguard-users-and-market-integrity)