Founded in 2018, MEXC is one of the largest crypto exchanges in the world, with a podium in spot trading volume. For example, in July 2025 it processed more than 150 billion dollars in turnover. It is especially popular in Asia and emerging markets.
In light of this, it was surprising that the exchange previously froze a major crypto investor’s funds for months after he was accused of violating the platform’s policies. The investor, who goes by the name The White Whale, had $3 million frozen by the platform in July after allegedly placing two orders in the same second. This was interpreted by the exchange as a sign that you were not trading manually, which is a violation of the terms of service.
The whale denied the allegations and has since waged a media campaign to get his money back. Even renowned blockchain analyst ZachXBT recently joined in. After a public dispute between the trader and MEXC, the exchange recently finally relented. Cecilia Hsueh, head of security at MEXC, wrote in a post on X that they apologized to the whale and refunded his money. He also added that as a result of the incident, MEXC is now working on an expedited channel to resolve outstanding account issues.
The major investor pointed to systemic problems on the MEXC stock exchange
A The white whale because he also reported about it during his media campaignthat he weighed in on hundreds of cases in which the exchange also froze the accounts of other traders indefinitely. He pointed out that they are not so lucky because their message did not reach as many people. The White Whale’s post was seen by more than 405 thousand people at the time of writing.
In his post, the major investor called on the Mexican stock exchange to review their regulations and control processes. One of the fair’s leaders, the aforementioned Hsueh, responded to X by saying that they are working to ensure that a similar case does not occur.. At the same time, he explained such cases by saying that the stock market grew too fast and MEXC’s risk management, operations and PR teams could not keep up with this growth. He concluded by saying that the management of the entire MEXC fair now realizes that changes need to be made.
Data from CryptoQuant shows that Bitcoin withdrawals on the exchange increased from 40 per day in mid-July to 1,237 – around the time The White Whale’s funds were frozen. And the number of withdrawals remained high: the platform processed 1,200 withdrawals per day on October 30 and 1,450 on October 31. It is certain that during The White Whale’s media campaign and during the closing post, numerous other users also reported issues and complained about referral issues. There were people who said that they could not withdraw money from the exchange for more than 1 year and that they could not even contact customer service. The White Whale incident at MEXC is a textbook example of why the crypto mantra “if it’s not your key, not your money” remains key. When someone keeps money on centralized exchanges, they hand over control and management to an unknown centralized entity, and this can lead to unexpected freezes, delays, or even losses.
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