A crypto trader known as “White Whale” revealed that MEXC asked him to fly to Malaysia in person to verify his identity after the exchange froze $3.1 million of his funds. The trip, the trader said, was required to speed up the process of unlocking his money.
This move is highly unusual, as identity verification is normally handled online. Screenshots shared by White Whale on X show MEXC offering meetings with senior leaders in Malaysia and hinting at potential business deals and trading advantages as part of the process.
The trader refused, calling it a pressure tactic and unsafe, as traveling abroad to meet an exchange could be risky. He posted, “Crypto kidnappings are on the rise—why would someone with over $100M on-chain ever agree to fly to another country and enter the lion’s den of an organization he’s publicly protesting against?”
MEXC Defends Risk Management Policies
Earlier this year, MEXC had stated that the exchange strictly adheres to risk management policies and does not freeze assets without valid reasons. The company cited potential responses to activities like price manipulation, wash trading, self-trading, front-running, fraudulent trading, and false quoting.
Currently, the trader stated he had fulfilled all other KYC requirements, including face verification, phone number, and home address confirmation, and pointed out that MEXC’s Terms of Service do not reference in-person verification.
On Monday, he also launched a $2 million social media campaign to push MEXC to release his frozen $3.1 million. He further said that people can join the campaign by creating a free NFT on the Base network and tagging MEXC or its COO on X with “#FreeTheWhiteWhale.”
The trader even announced that if the funds are released, the first 20,000 NFT holders will equally share a $1 million USDC reward. However, White Whale is not the only one with problems at MEXC.
In April, another user, Pablo Ruiz, claimed that the firm had frozen his $2 million in Tether (USDT) without warning or reason, citing a “risk control” rule. Ruiz got automated replies, one saying his account would be reviewed for a year, with no further action until April 17, 2026.
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