The call by MEXC to meet physically overseas to verify the holding of frozen crypto raises concerns over the safety of users, as well as concerns about the fairness of the exchange.
Crypto exchange MEXC has been accused by a trader, “The White Whale,” that MEXC requested him to travel to Malaysia to release 3.1 million dollars.
This request was offered despite the trader performing all normal KYC checks online, through live video and address verification, as his posts on X (formerly Twitter) and corroborating reports indicate.
The official email of the Global Head of Customer Service of MEXC invited the trader to travel to Malaysia. The message assured them of the special invitation and the possibility of meeting the leadership team in an attempt to discuss their case.
However, after accepting, he was only able to get one person who required a face-to-face KYC to release his funds. He declined this unusual step, citing previously met KYC and the lack of face-to-face requirement of the MEXC policies.
The trader termed the demand by MEXC as a form of coercion, saying that the exchange was creating obstacles and making access to funds a point of negotiation.
He said there is an increased risk of crypto kidnappings and security vulnerability of high-net-worth individuals, and that it goes against logic that anybody with over 100 million dollars worth of assets risks flying to a disputed country in such circumstances. “This isn’t compliance. He said, “They dress intimidation as procedure.”
Source – X
Security concerns underscore the controversy. The White Whale, which holds more than 100 million dollars in on-chain assets, raised the issue of increasing kidnappings in the crypto world.
His refusal to meet was due to these risks and unspecified face-to-face KYC requirements at MEXC.
In July 2025, the exchange abruptly froze his account under unspecified risk control measures, causing an uproar.
The trader responded by launching a $2 million on-chain social media campaign that depends on NFTs and rewards to those who spread the word and tag MEXC officials using the hashtag #FreeTheWhiteWhale.
The campaign will also put a strain on MEXC to free its funds, and it seems to be a general user dissatisfaction with exchange freezes and an unclear policy.
MEXC’s Stance and Industry Implications
MEXC claims that it adheres strictly to risk management and does not make illogical freezing of assets illogically. The exchange made no specific comment in regard to the face-to-face meeting request.
This event throws a light on the power of centralized exchanges and the absence of transparent and fair procedures regarding disputes over funds.
The case poses serious concerns regarding security, consumer safety, and accountability in the fast-moving crypto market.
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