MEXC Demands ‘White Whale’ Trader Fly To Malaysia For $3.1M Fund Freeze Release & KYC Check

MEXC Global has told a high-profile crypto trader known as “The White Whale” to travel to Malaysia for an in-person identity check to release more than $3.1 million in frozen assets. 

The trader says his account was frozen in July 2025 under MEXC’s “risk control” rules. The exchange’s head of customer service, Derrick, offered a VIP experience and hotel stays while saying a face-to-face meeting was required to finish verification and unfreeze the funds.

Verification demand and the response

The White Whale says he has already passed multiple checks. He completed live video verification, supplied proof of address, and confirmed his phone number.

He claims to hold over $100 million in on-chain assets. He refused the Malaysia visit because of safety fears. He also pointed out that MEXC’s Terms of Service do not require in-person checks.

Derrick pushed for the meeting, and he framed it as a way to speed the appeal and to free the funds. He told the trader, “But I understood that you have sought to expedite the unfreezing of your account.” 

The message linked access to the money with the travel request, and after the Malaysia plan was rejected, Derrick offered Hong Kong as an alternative. He called it “one of the safest countries” for the meeting.

Security worries and public reaction

The push for a face-to-face meeting has drawn wide attention, and many on social media used the hashtag #FreeTheWhiteWhale to report similar account freezes and disputes with MEXC. The demand also raised fresh concerns about personal safety.

Also Read: MEXC Details Transparency Report With $559M Withdrawals and $2.2M in Prevented Crypto Theft

High net worth crypto holders have warned about kidnapping and other risks tied to in-person meetings.

Several users say MEXC set unusual hurdles, and the exchange described the meeting as a “manual verification process as an exception” to help the appeal. Derrick also mentioned “enhanced trading perks” and possible partnership chances while urging the trader to meet. 

The White Whale made clear he wants the funds released and the account closed, not a new business tie.

Pattern of account actions

This incident is not alone, as users report comparable freezes and long reviews. Pablo Ruiz says he lost access to $2.08 million USDT after his account was frozen on April 17, 2025.

MEXC told him the review would take 365 days and asked him to reach out on 17th April next year. Ruiz says the exchange gave mixed messages at different times about the status of his review.

Other traders describe past actions where MEXC reversed gains or removed funds without clear steps for appeal. 

A user named Al Gore Rhythms reported $33,658 was taken from a spot account after MEXC flagged “abnormal trading activities.” Another user, CoackKCrypto, said $330,000 was seized for what the exchange called “abnormal profit.” 

Some customers say MEXC deleted transaction history and returned automated replies instead of full explanations.

Why does this matters?

Centralised exchanges function as keepers of user funds and are also seen as gatekeepers to cryptocurrency. When exchanges do any kind of account action as a form of enforcement without any reasonable justification, users get cut off from their funds and lose trust. 

MEXC operates offshore, which means they have less public scrutiny than U.S.-listed companies. This sort of enforcement can feel patchy, and a lot of clients get stuck with little to no alternatives.  

Regulators and the public have tightened scrutiny of offshore platforms since the industry has faced failures in the past. The absence of a transparent mechanism for resolving conflicts, coupled with the potential for users’ funds to remain inaccessible for extended periods, is a concern for many users.

Also Read: MEXC Ventures Invests in an Indonesian Crypto Exchange Triv, Holding $200M Valuation