MEXC, one of the largest global crypto exchanges, is facing mounting user backlash and significant withdrawals after a wave of accusations about withheld funds and poor internal practices circulated on X.
On-chain data from CryptoQuant shows a sharp spike in Bitcoin withdrawals from MEXC beginning in mid-2025, coinciding with the latest controversy surrounding the exchange.
Outbound transactions spiked after months of calm, indicating users are withdrawing funds amid rising concerns over transparency and management.
The controversy erupted after trader The WhiteWhale publicly accused MEXC of freezing his assets, prompting independent investigator Zachxbt to begin reviewing user claims.
Crypto commentator on X, James Rucker (JT) amplified the discussion, calling MEXC a “mafia exchange” and urging others with information, including about an alleged insider known as “Tony”, to contact ZachXBT.
In a rare public admission, Cecilia Hsueh, MEXC’s Chief Strategy Officer, posted: “We fuc*ed up.” She apologized to The White Whale, confirming that his funds had been released and admitting to communication failures.
Her statement drew sharp reactions from industry figures, with one of JZ’s deleted comment claiming that “MEXC is insolvent,” reflecting broader skepticism about the exchange’s promises.
Public accusation in recent past
The current wave of withdrawals appears to be the culmination of tensions that began weeks earlier when trader White Whale accused MEXC of freezing over $3 million in funds.
In September, he launched a $2 million social media campaign against the exchange, claiming his account was locked for being “too profitable.”
The campaign, featuring a bounty for users minting NFTs and tagging MEXC with the hashtag #FreeTheWhiteWhale, quickly gained traction, fueling public distrust and drawing attention from prominent crypto figures and investigators.
MEXC’s silence beyond Cecilia’s post and its opaque dispute history cast doubt on promised reforms, a sharp reminder that accountability still defines centralized exchanges.
Also read: MEXC Ventures Raises its Investment in Ethena to $66 Million
