MEXC Issues Public Apology to White Whale, Returns $3 Million in Frozen Funds

MEXC’s Chief Strategy Officer, Cecilia Hsueh, has issued a public apology to crypto trader “The White Whale” and confirmed the release of more than $3 million in frozen funds. This marks a major reversal after months of public controversy.

The trader has been relentlessly campaigning against the exchange for freezing his funds since August. Reportedly, MEXC also asked for an in-person KYC. 

MEXC Admits Fault and Promises Reforms

In a candid post on X, Hsueh admitted that MEXC’s rapid growth outpaced its internal infrastructure, saying the exchange’s “risk, operations, and PR teams have not kept up.” 

The new CSO took responsibility for miscommunication and pledged to drive leadership changes to improve transparency and operational consistency.

The apology marks the first public acknowledgment by MEXC that it mishandled the case. The dispute started in July when the trader’s account was frozen under “risk control” protocols.

The White Whale, who first exposed the dispute publicly in August, confirmed that his funds had been released but said the apology lacked clarity.

“While appreciated, it didn’t specify what they were apologizing for,” he said. “Implying I was a criminal or scammer would have been nice to address.”

He reaffirmed that he never used automated trading bots or privileged API access. Instead, the whale claimed his only “offense” was being consistently profitable on the platform.

$3 Million to Be Donated to Supporters and Charities

White Whale announced that he would donate all recovered funds instead of keeping them.

Half will go to early supporters through his NFT campaign. The remaining will be distributed to verified non-profit organizations. 

He said an airdrop claim mechanism and community voting system will be launched in the coming days.

“It’s not fair that someone with followers be treated differently,” he said. “I never felt right taking the money back just for myself.”

How It All Started

BeInCrypto first covered the story in an exclusive interview earlier this year, where The White Whale accused MEXC of freezing $3.1 million of his funds without cause. 

He said the exchange later demanded he fly to Malaysia for in-person verification — a condition not listed in its terms of service.

In that interview, he stated that his legal options were limited due to the exchange’s corporate structure and that his only path was public advocacy. MEXC at the time denied wrongdoing, citing “potential risks” under its compliance system.

The story gained global traction, with industry figures citing it as a cautionary tale about centralized exchange oversight and risk-control opacity.

The incident has become a benchmark case for user rights and operational transparency in centralized exchanges.

Hsueh’s apology suggests MEXC recognizes the need for reform, particularly in how it communicates compliance actions and handles fund freezes. The case highlights the growing influence of public pressure in holding exchanges accountable.

“The battle has been won,” The White Whale wrote, “but the war is far from over… This is about fixing our own problems before governments do it for us.”