About three months after a high-profile dispute with a crypto trader known as “White Whale,” MEXC exchange has publicly apologized and released the trader’s frozen $3 million in funds.
MEXC’s Chief Strategy Officer, Cecilia Hsueh, issued a statement on X admitting fault in the handling of the incident.
“We apologize to [the White Whale], and his money is already released,” said Hsueh. “He can claim it at any time. I messed up in communicating with him. I got emotional, and I shouldn’t have.”
The dispute originated in July when MEXC froze approximately $3.1 million of the trader’s assets, citing internal “risk control rules.” The incident quickly escalated into a major controversy within the crypto community.
Trader Launches Costly Campaign Against MEXC
Following the freeze, White Whale responded by launching a $2 million social media campaign criticizing the exchange and later increased the campaign’s funding to $2.5 million.
He claimed MEXC had asked him to travel to Malaysia to personally resolve the issue — a demand he said was unreasonable.
White Whale’s campaign attracted significant attention, portraying the conflict as an example of centralized exchange overreach.
Apology Sparks Mixed Reaction
Although Hsueh’s public apology marked an apparent resolution, many users in the crypto community expressed skepticism about MEXC’s handling of the case.
“[W]hile appreciated, it [the apology] didn’t specify what they were apologizing for,” White Whale wrote in response. “Implying I was a criminal (with their public AML claims in the beginning) or a scammer (with the most recent accusations after AML was publicly debunked) would have been nice.”
White Whale said his “work is not yet done,” claiming that he was aware of “hundreds” of similar cases in which users’ funds were frozen. He pledged to “distribute 100%” of the recovered $3 million to supporters and nonprofit organizations backing his campaign.
Community Reactions and Market Impact
Online reactions emphasized that the resolution likely wouldn’t have occurred without public pressure.
“Most regular users wouldn’t stand a chance in a situation like this,” one Reddit user commented. “So yeah, it’s great that the White Whale finally got paid, but it doesn’t change the fact that MEXC froze a legit trader’s funds for months and only fixed it once the internet got involved.”
According to Nansen data, MEXC’s token (MX) dropped roughly 3.5% following the apology post, slipping from $2.30 to $2.22.
The incident has reignited debate about transparency and accountability at centralized exchanges, which remain under scrutiny from both regulators and users seeking greater protection of digital assets.
