MEXC has released $3.1 million belonging to a crypto trader known as the White Whale, three months after freezing the account and triggering a public campaign that drew widespread criticism of the exchange. In a post on X on Friday, MEXC Chief Strategy Officer Cecilia Hsueh admitted that the company “f***-ed up” in its handling of the case. “We apologize to [the White Whale], and his money is already released,” Hsueh wrote. “He can claim it at any time. I messed up in communicating with him. I got emotional, and I shouldn’t have.” The trader’s funds were frozen in July under what MEXC described as “risk control rules.” The decision sparked a backlash across social media and calls for greater transparency from centralized exchanges.
Investor Takeaway
Trader’s Response and Ongoing Dispute
The White Whale, who organized a $2.5 million campaign targeting MEXC, said he welcomed the apology but noted that it lacked accountability. “[W]hile appreciated, it didn’t specify what they were apologizing for,” he wrote, referring to earlier statements from MEXC suggesting he was involved in suspicious activity. “Implying I was a criminal or a scammer would have been nice.” The trader claimed that “hundreds of other cases” remain unresolved and vowed to continue pursuing compensation for other users. He also pledged to distribute 100% of the returned $3 million among his 20,000 online supporters and nonprofit organizations. “Most regular users wouldn’t stand a chance in a situation like this,” one Reddit user wrote in reaction to the outcome. “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.”
Market Reaction and Exchange Outlook
Data from analytics firm Nansen showed that MEXC’s token, MX, fell roughly 3.5% following Hsueh’s post, from $2.30 to $2.22. The decline reflects investor unease over the incident, which underscored the reputational risks centralized platforms face when disputes spill into public view. The White Whale case drew attention because of the scale of the frozen assets and the unusual intensity of the public campaign.