White Whale Resurfaces Dispute With MEXC, Raising Concerns About Centralized Exchange Transparency

The White Whale accused MEXC of listing perpetual futures before liquidity support was active in January 2026.

The dispute reignited concerns around centralized exchange transparency, internal trading practices, and potential conflicts of interest.

White Whale previously alleged MEXC froze $3 million in funds in August 2025 under unclear KYC conditions.

The ongoing conflict between The White Whale and MEXC has drawn renewed attention to the risks of centralized crypto exchanges. Recent allegations claim that MEXC listed White Whale's perpetual futures without active liquidity support, potentially operating the market internally. This raises questions about whether exchanges act as neutral platforms or engage in activities that could conflict with user interests.

The initial dispute in August 2025 involved MEXC freezing White Whale's account due to in-person KYC requirements that were not clearly communicated. MEXC initially denied wrongdoing but eventually admitted fault, sparking broader discussions about the control centralized exchanges can exert over user funds.

The situation has implications beyond MEXC. It highlights a broader issue of trust between users and centralized exchanges. Concerns about internal trading, fund safety, and transparency are not unique to this case but are part of a growing skepticism in the crypto community.

What is the current dispute between The White Whale and MEXC?

The recent accusations stem from the launch of White Whale's perpetual futures in January 2026. Allegations include that MEXC listed the futures before liquidity support was active, raising concerns about how the order book was managed. The White Whale claimed this suggests internal operation of the market, which could create a conflict of interest.

MEXC has not confirmed these claims, but the allegations have reignited the debate about how exchanges handle liquidity and transparency. This dispute has drawn comparisons to the FTX incident, where internal trading practices and transparency issues played a key role.

What are the implications for centralized exchanges and investors?

The White Whale-MEXC case is not an isolated incident. It reflects broader concerns about the role of centralized exchanges in the crypto ecosystem. Investors are increasingly wary of how these platforms operate behind the scenes.

The case has sparked discussions around the need for clearer policies and greater accountability. Critics argue that the lack of transparency can lead to conflicts of interest and unfair treatment of users. This has led to a growing preference for decentralized exchanges, which offer more transparent execution and price discovery.

Retail traders, long-term holders, and institutions are all potentially affected by such disputes. The reputational risks associated with centralized exchanges could impact future token listings and regulatory scrutiny.

How has the market responded to the situation?

The White Whale token (WHITEWHALE) has experienced significant market activity. In early 2026, its market cap surged over 50 times, driven by retail investor interest and new trading listings.

The token's rise is tied to its narrative as a community-driven project born from the MEXC dispute. WHITEWHALE aims to address challenges like account freezes, lack of transparency in KYC processes, and weak community leverage against centralized exchanges.

Despite the short-term volatility, the market remains cautious. Investors are monitoring future developments as the token continues to be sensitive to sentiment and regulatory actions. The long-term impact on MEXC's reputation and the broader market trust in centralized exchanges remains to be seen.