MEXC Releases $3 Million to Trader After Months of Account Freeze and Public Social Media Pressure

MEXC Releases $3 Million to Trader After Months-Long Account Freeze

A high-profile crypto trader known as The White Whale has finally regained access to $3 million in funds after months of dispute with MEXC, drawing attention to the exchange’s withdrawal practices and internal challenges.

The account had been suspended in July over allegations of automated trading, a claim the trader vehemently denied.

What Went Wrong With The White Whale Account

MEXC accused The White Whale of placing two orders within the same second, suggesting automated trading that violated the exchange’s terms of service.

The trader rejected the claims, maintaining that all activity was manual.

Following the suspension, the funds remained frozen for four months despite repeated attempts to resolve the issue.

The White Whale launched a persistent social media campaign to recover the assets, gaining support from pseudonymous on-chain investigator ZachXBT.

The public pressure intensified after the trader shared detailed transaction histories to counter the exchange’s allegations.

Apology From Leadership Acknowledges Mistakes

On X, Cecilia Hsueh, MEXC’s Chief Strategy Officer, admitted the exchange mishandled the situation.

She wrote,

“We fucked up. We apologize to The White Whale, and his money is already released. He can claim it at any time.”

Hsueh added that her communication with the trader had been emotional and unprofessional:

“I got emotional, and I shouldn’t have.”

She acknowledged that the intervention of a trader with a large social media following played a key role in resolving the dispute.

In response to a comment highlighting this, Hsueh said,

“You’re not wrong. It takes a lot to wake up the whole company.”

Growing Pains Behind the Controversy

Hsueh attributed the incident to the company’s rapid growth.

From a small exchange just a few years ago, MEXC has become a top-10 platform by trading volume, but its risk, operations, and PR teams have struggled to keep up.

“We’re going to change that,” she stated, noting that the leadership team is now taking the issues seriously and is focused on improving transparency.

The exchange plans to introduce a “fast-track channel” to resolve unresolved account issues for other traders.

Impact on Withdrawals and User Confidence

Data from CryptoQuant revealed a dramatic increase in Bitcoin withdrawals from the exchange, rising from 40 per day to over 1,200 in mid-July, coinciding with The White Whale’s account freeze.

Withdrawals have remained high, with 1,450 recorded on Friday as of 4 PM ET.

The incident has triggered broader concern among MEXC users.

Reports have emerged of others facing similar account freezes, with traders sharing frustrations about long delays and lack of support.

One trader wrote on X,

“I used to have millions on MEXC. And lately, I had the same exact issue and false allegations. I got it all solved after 14 days of waiting. Now I can’t trust it anymore.”

Another added that after years of smooth onboarding for institutional clients, their requests had been blocked for over a year without explanation or access to customer support.

Board Steps In Amid Public Backlash

Hsueh confirmed that the backlash prompted the company’s board to intervene.

She said,

“Members of the board stepped in given the backlash to support what I was trying to resolve.”

The combination of executive accountability and public scrutiny appears to have accelerated the resolution and may lead to lasting changes in how MEXC handles account issues.

Trader Pledges Redistribution and Transparency

The White Whale confirmed receipt of the $3 million and intends to distribute portions of the funds among supporters and nonprofit organisations.

While the immediate dispute has been resolved, the episode has highlighted wider concerns about withdrawal security, transparency, and customer service in rapidly growing cryptocurrency exchanges.

The situation has left users closely watching MEXC, with the spike in withdrawals underscoring lingering uncertainty among the platform’s broader community.