MEXC Asks Crypto Trader to Fly to Malaysia to Unfreeze $3.1M in Suspicious Move
MEXC International has demanded a high-profile crypto dealer generally known as “The White Whale” journey to Malaysia for in-person verification to unlock over $3.1 million in frozen funds.
These demands got here regardless of the dealer already finishing a number of KYC necessities, together with stay video verification, tackle proof, and telephone quantity affirmation.
The alternate’s International Head of Buyer Service, Derrick, personally prolonged the invitation, providing a “VIP expertise” and luxurious lodging whereas insisting that face-to-face conferences are vital to finish the verification course of.
Safety Issues Mount as Crypto Kidnappings Rise Globally
The controversial demand comes amid rising issues about crypto-related kidnappings and safety dangers going through high-net-worth people.
The White Whale, who claims to carry over $100 million in on-chain belongings, rejected the assembly proposal, citing private safety issues and noting that MEXC’s Phrases of Service comprise no necessities for in-person KYC procedures.
MEXC froze the dealer’s account in July 2025 below imprecise “threat management” protocols with out prior discover or clear rationalization.
When the dealer expressed reluctance to journey, Derrick’s response was telling: “However I understood that you’ve got sought to expedite the unfreezing of your account,” basically linking fund entry to the Malaysia assembly requirement.
The incident has sparked widespread social media backlash below the hashtag #FreeTheWhiteWhale, with a number of customers reporting related account freezes and fund seizures by MEXC.
Trade Doubles Down Regardless of Lacking Authorized Foundation for In-Particular person Calls for
MEXC’s persistence in demanding face-to-face verification lacks basis of their revealed phrases of service, elevating questions concerning the alternate’s compliance procedures.
After the Malaysia proposal was rejected, Derrick steered Hong Kong instead location, claiming it might be “one of many most secure nations” for the assembly.
The alternate consultant acknowledged the weird nature of their request, stating, “that is certainly not a regular course of, however I’m actually making an attempt to assist out to your enchantment.”
He characterised the in-person assembly as a part of a “guide verification course of as an exception” to facilitate the fund launch enchantment.
The White Whale has already accomplished in depth verification procedures accepted by MEXC throughout earlier opinions, together with liveness checks, tackle verification, and telephone quantity affirmation.
The dealer emphasised having offered all requested documentation and questioned why further verification necessities emerged with out clear justification.
MEXC’s strategy contrasts sharply with commonplace trade practices, the place distant KYC procedures usually suffice for account verification and fund entry.
The alternate’s incapability to level to particular phrases of service provisions supporting their calls for undermines the legitimacy of their verification necessities.
The state of affairs escalated as MEXC tried to border the assembly as a collaboration alternative, with Derrick mentioning “enhanced buying and selling perks” and “thrilling partnership alternatives” alongside the verification course of.
Nonetheless, the dealer remained centered solely on fund restoration and account closure moderately than on ongoing enterprise relationships.
Sample of Account Freezes Emerges as Customers Report Comparable Remedy
A number of MEXC customers have reported comparable experiences with arbitrary account freezes and questionable fund restoration procedures.
Pablo Ruiz documented shedding entry to $2.08 million USDT after his account was frozen on April 17, 2025, below “threat management” protocols with no clear rationalization or enchantment mechanism.
MEXC knowledgeable Ruiz that his account assessment would take 12 months, with directions to “contact us once more on 04/17/2026.”
The alternate offered contradictory info, at one level claiming the danger management course of was accomplished whereas assist insisted the assessment remained ongoing.
Earlier incidents from 2024 included “clawback” allegations where MEXC reportedly reversed profitable trades and confiscated funds from consumer accounts.
Dealer “Al Gore Rhythms” had $33,658 deducted from his spot account, with MEXC claiming they’ve “taken measures to recuperate the losses incurred” resulting from “irregular buying and selling actions.”
One other case concerned CoackKCrypto, who alleged MEXC seized $330,000 “resulting from irregular revenue” with out clear justification or due course of.
Customers reported that MEXC deleted transactions from their historical past and offered automated responses moderately than substantive explanations for enforcement actions.
The offshore alternate operates with much less regulatory oversight than publicly listed U.S. corporations, doubtlessly contributing to inconsistent enforcement practices.
A number of enforcement entities proceed investigating varied offshore exchanges following the FTX collapse, whereas customers more and more query custodial dangers related to centralized platforms missing clear dispute decision mechanisms.
On the time of publication, the MEXC workforce has neither launched the funds nor offered any readability on the matter.
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