• MEXC wrongfully froze $3M from The White Whale, accusing automated trading.
• On-chain investigator ZachXBT’s intervention forced MEXC to publicly apologize.
• MEXC plans a “fast-track channel” for future disputes amid growing user distrust.

Cryptocurrency exchange MEXC has issued a public apology for wrongfully freezing $3 million in funds from the prominent trader known as “The White Whale.” This move came after weeks of public backlash and intervention by on-chain investigator ZachXBT. The incident, which first surfaced in July, sparked widespread criticism and has raised concerns about MEXC’s operational practices and transparency.

Background of the Incident

In July, MEXC froze The White Whale’s account, alleging that the trader violated its terms of service. The exchange claimed that placing two orders within the same second was an indication of automated trading. As a result, MEXC informed the trader that the funds would be forfeited. However, the White Whale denied these accusations and pressured MEXC to return the funds.

At first, MEXC was reluctant to talk about the problem, but later on, they changed their position after ZachXBT, the on-chain investigator, openly supported the trader. MEXC’s mistake was then pointed out, and they were forced to react and recognize it because of this intervention.

MEXC’s Apology and Future Plans

Following weeks of silence, MEXC’s Chief Strategy Officer, Cecilia Hsueh, issued a statement on social media, admitting the company’s mishandling of the situation. “We messed up. We apologize to The White Whale, and his money is already released,” she wrote. Hsueh further admitted to her emotional response during the communication with the trader and said, “I shouldn’t have acted that way.”

The company has now made the funds available for The White Whale to claim at any time. In response to this incident, MEXC announced plans to create a “fast-track channel” for dispute resolution to address future issues more efficiently.

Growing Criticism and Impact on MEXC

The apology and resolution of the case, however, did little to quell the growing frustration among traders. Many have since come forward with similar complaints of frozen accounts and inaccessible funds. Some traders accused MEXC of ignoring withdrawal requests for months, further eroding trust in the platform.
ZachXBT’s involvement and the subsequent public apology have not stopped the increasing skepticism surrounding MEXC’s practices. Data from CryptoQuant reveals that Bitcoin withdrawals from MEXC spiked dramatically following the incident. The platform saw a surge in daily withdrawals from 40 to over 1,200 in mid-July. While the withdrawals have somewhat stabilized, MEXC continues to face criticism from users.