The dealer often known as The White Whale has damaged his silence in an unique dialog with BeInCrypto. He provided his first-hand account of the controversy surrounding MEXC and the freezing of greater than $3 million of his funds.
His remarks shed new gentle on a saga that sparked debates throughout Crypto Twitter, ignited a grassroots assist marketing campaign, and put centralized change (CEX) accountability underneath the highlight.
White Whale Rejects MEXC’s $3 Million Freeze as Alternate Faces Mounting Scrutiny
In crypto, there’s not often such a factor as an remoted dispute. A single dealer’s locked funds can turn out to be the spark that ignites wider questions on belief, transparency, and whether or not CEXs are nonetheless secure locations to commerce.
That’s precisely what occurred in The White Whale. The high-profile dealer says MEXC froze $3.1 million of his funds and gave “absurd” and “unwritten” ultimatums.
MEXC’s demand that he fly to Malaysia for in-person verification is on the coronary heart of the dispute. For the White Whale, that is the place the precept hardens into an absolute no.
“The one acceptable decision is easy: launch my funds instantly. I’m not a legal. I’ve damaged no guidelines. In the meantime, MEXC is breaking their Phrases of Service by insisting the one decision is a face-to-face, in-person assembly—one thing that seems nowhere of their consumer settlement,” he began.
Talking to BeInCrypto, The White Whale mentioned he initially thought-about the demand, however his safety crew insisted security couldn’t be assured in a overseas jurisdiction.
“I’ve a spouse and two younger daughters at house. Some issues are price greater than cash,” he defined.
Nonetheless, even past the security concern, he insists the demand is unacceptable as a result of it rewrites the foundations.
“Exchanges like MEXC don’t get to alter the rulebook at any time when they really feel prefer it. They gave me a algorithm of their Phrases of Service. I adopted these guidelines. Now they’re shifting the goalposts in the course of the sport. That’s not taking place—not for me or anybody,” he said.
MEXC Cites Compliance Danger
To make sure unbiased reporting, BeInCrypto additionally reached out to MEXC for an official response to The White Whale’s accusations and claims.
The change didn’t make clear the ‘in-person KYC’ coverage, citing regulatory necessities. MEXC spokesperson talked about that commenting on The White Whale’s KYC allegations would represent “tipping off.”
BeInCrypto requested MEXC in regards to the screenshots circulating on-line, displaying the change’s consultant immediately asking the sufferer to journey to Malaysia and confirm his id. In response, MEXC mentioned the next:
“MEXC has just lately continued to boost its danger management framework, with a specific deal with strengthening compliance danger administration. Throughout our overview, we recognized that sure consumer funds carried potential dangers. Consequently, we imposed short-term withdrawal restrictions and required the affected customers to finish superior KYC verification. MEXC strictly adheres to compliance necessities and stories suspicious transactions and accounts. Associated compliance stories had been submitted in July and August,” mentioned an MEXC spokesperson.
Authorized Motion In opposition to MEXC is Not an Choice for The White Whale
Some of the placing components of this case is The White Whale’s admission that authorized recourse is actually off the desk.
Whereas he revealed getting access to nice attorneys, they’ve reportedly advised him the construction of MEXC’s entity and Phrases of Service make authorized decision subsequent to inconceivable by design.
That, he argues, is exactly the purpose of his marketing campaign. If merchants can’t depend on the courts, collective strain turns into the one weapon.
“The voice of the folks is all that’s left. That’s why I’m doing this,” The White Whale articulated.
From Cockpit Self-discipline to Crypto Warfare: A Struggle For CEX Transparency?
Within the interview, The White Whale described his strategy to buying and selling by means of the lens of his former profession as a pilot, the place self-discipline was paramount.
“Earlier than you carry out a guidelines on the plane, you carry out a guidelines on your self. If drained, emotional, burdened, or distracted, you don’t fly. That very same precept applies to buying and selling. Self-discipline begins earlier than the commerce,” he mentioned.
But, that self-discipline has been examined in latest weeks. As a substitute of poring over knowledge and setups, he’s been compelled right into a public battle with one of many business’s largest exchanges.
“The distraction has in all probability price me extra in missed buying and selling alternatives than the funds I’m even attempting to recuperate, most of which I’m making a gift of. However some fights are price the fee. That is one in all them,” he mentioned.
The turning level got here when The White Whale launched a $2 million bounty marketing campaign, tied to an NFT (non-fungible token) declare system.
This helped him draw consideration to his case and rally group assist. Inside days, reportedly, over 24,000 wallets had signed up.
Nonetheless, the White Whale mentioned it wasn’t in regards to the cash. Reasonably, it was in regards to the precept.
“If I’ve to maintain scaling it up and finally flip it right into a $100 million bounty, I’m prepared to try this,” he famous.
The marketing campaign has had ripple results inside MEXC itself. BeInCrypto acquired stories that this explicit problem has been a continuing subject on the firm’s latest inside retreat in Bali.
The White Whale insists his case is way from distinctive, noting that tons of of merchants have the identical story.
“They will’t all be unhealthy actors. One thing is essentially mistaken at MEXC,” he noticed.
When requested about different centralized exchanges, The White Whale talked about that he by no means had any points with some other exchanges. Most of his trades are at the moment on Hyperliquid, however his unfavourable expertise to this point has solely come from MEXC.
Proof-of-Reserve Issues
This faucets right into a wider problem that crypto has wrestled with for the reason that collapse of FTX in 2022: the reliability of CEXs and their proof-of-reserves (PoR) practices.
Whereas many CEXs rushed to publish audits or dashboards after FTX’s implosion, critics argue that the majority of those “proofs” are little greater than screenshots of inside numbers.
The White Whale will not be the primary consumer to criticize MEXC in latest instances. There was a number of issues flagged throughout social media.
MEXC is shady AF.
They held 500K USDT hostage for weeks and made me soar by means of all types of hoops even after intensive KYC, in the long run they even insisted on a printscreen from my pockets with knowledge that it simply doesn’t present within the format they needed.
It was actually…
— Nico
(𝔦, 𝔦) (@Simulacra333) August 26, 2025
BeInCrypto requested the change about allegations of non-transparency and points with its proof-of-reserve. The change denied any claims about misconduct and offered technical particulars of its reserve construction.
The change mentioned that as an alternative of third-party audits, it discloses all pockets addresses and supply code, enabling customers to conduct unbiased verification. The platform supplies a verifiable proof mechanism.
Our proof of reserves makes use of a Merkle Tree construction, which is absolutely clear and permits any consumer to independently confirm. As well as, MEXC beforehand established a $100 million Guardian Fund to safeguard consumer belongings, with the tackle publicly disclosed for verification
What It Means for Crypto
The White Whale’s marketing campaign strikes at a deeper unease in crypto. On the one hand, there’s the stress amongst merchants who worth transparency. However, centralized platforms nonetheless function with opaque constructions.
Since FTX, Binance change, and others have all confronted heightened scrutiny over their stability sheets and reserve reporting.
For the White Whale, the query isn’t just about his $3 million. Reasonably, it’s about whether or not the business will tolerate exchanges that make arbitrary calls for and implement guidelines not written into contracts.
Within the meantime, the standoff continues, with MEXC not budging on its requirement for in-person KYC.
“Our precedence is to make sure that all procedures, together with KYC and danger management compliance overview, are clear, standardized, and aligned with world laws. Clear and clear insurance policies govern all consumer procedures, and any official communication from MEXC will at all times align with these requirements,” MEXC had advised BeInCrypto.
On his half, the White Whale vows to not comply. As a substitute, he continues to publish day by day updates, maintaining the marketing campaign alive and the strain mounting.
EXPOSE: The Fact Behind MEXC’s “Proof of Reserves”
Let’s lower by means of the shiny advertising and marketing lingo.
MEXC claims to have billions in reserves and “overcollateralized consumer belongings.” However once you peel again the layers, it’s all simply numbers they publish themselves – with zero… pic.twitter.com/SxpFr6ele4
— The White Whale (@TheWhiteWhaleHL) August 27, 2025
Whether or not or not MEXC relents, the case already serves its objective, compelling the crypto group to revisit the core query of belief in centralized platforms.
This query couldn’t be extra pressing in a market nonetheless haunted by the ghosts of collapsed exchanges.
The submit Interview with The White Whale and MEXC – Fact Behind The $3 Million Frozen Funds appeared first on BeInCrypto.
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