The crypto exchange’s admission sparks relief and renewed scrutiny over centralized fund controls.
MEXC Apologizes After $3M Fund Freeze Controversy
Crypto exchange MEXC has publicly apologized to a pseudonymous trader known as White Whale after freezing approximately $3.1 million in user funds for nearly three months. The decision to release the funds followed a public campaign that drew widespread attention across the crypto community.
In an X post on Friday, MEXC Chief Strategy Officer Cecilia Hsueh admitted the platform had mishandled the situation. “We apologize to [the White Whale], and his money is already released,” Hsueh said. “I messed up in communicating with him. I got emotional, and I shouldn’t have.”
The exchange had initially justified the freeze under “risk control rules,” though it failed to provide a clear explanation at the time.
Public Pressure Forces MEXC to Act
The White Whale launched a $2 million social media campaign in August to highlight the issue, later increasing the budget to $2.5 million as frustration grew. He claimed MEXC demanded that he travel to Malaysia to resolve the dispute — a request that further intensified community backlash.
The trader responded to the apology, stating that while he appreciated the gesture, it lacked clarity on the reasons behind the initial freeze. “Implying I was a criminal or scammer would have been nice to retract publicly,” he said, adding that many users had faced similar treatment and deserved justice.
Community Reaction and Market Response
The crypto community largely welcomed the fund release but continued to criticize MEXC’s centralized practices. One Reddit user summarized the sentiment: “It’s great that the White Whale finally got paid, but most regular users wouldn’t stand a chance without social pressure.”
Data from analytics platform Nansen showed MEXC’s native token MX fell 3.5%, from $2.30 to $2.22, shortly after the public apology — reflecting shaken investor confidence.
Centralized Exchanges Under Scrutiny
The case reignited debate about asset custody and user protection in centralized exchanges. Industry observers warn that such incidents highlight the importance of transparency and decentralized alternatives.
As one market analyst noted, “Incidents like this remind traders why self-custody remains crucial — control over private keys is control over your freedom.”
While MEXC’s apology marks the end of one dispute, trust rebuilding may take much longer, especially as more users demand accountability across the digital asset industry.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.