MEXC refunded $3 million in cryptocurrencies to the trader known by the pseudonym The White Whale following a public dispute over frozen funds.
The conflict began when The White Whale reported that MEXC had frozen $3.15 million from their account without notice or evidence of wrongdoing. The platform requested an “in-person KYC” in Malaysia, which was not included in the terms of service. The controversy escalated with a public campaign that included a $2 million reward to expose the exchange’s practices, generating distrust and $39 million in withdrawals in a single day, according to DefiLlama data.
MEXC’s CSO, Cecilia Hsueh, acknowledged failures in the risk and operations teams, admitting they had not scaled in line with the company’s growth. She promised to create a direct support channel for users with frozen funds and review communication and risk management protocols. MEXC clarified that restrictions are not applied due to profitability but in response to suspicious activity, and that most users regain full access after completing the verification process.
After the refund, The White Whale confirmed receipt of the funds and announced plans to donate part of the money to nonprofit organizations. The case highlights the principle “Not your keys, not your coins” and brings renewed attention to the importance of self-custody as the safest way to protect digital assets.
Source: https://x.com/TheWhiteWhaleV2/status/1984301224230076498
Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.
This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.
