Crypto Exchange MEXC-freed $3.1 million in funds, Crypto Exchange MEXC, claims he was told to fly to Malaysia to prove his identity directly.
According to a screenshot shared by the pseudonymous crypto trader “White Whale,” MEXC’s global head customer service provided him with an “exclusive invitation” to Malaysia and “detailed communication with the leadership team” about frozen assets.
The reported movements are outside the norm for crypto exchanges. Customer solutions typically include proof of address, verify funding sources, identify and other documents that can be sent online.
Screenshots of email and telegram chats shared by traders suggest that MEXC tried to lure them in with potential partnerships and “trading perks,” but crypto traders rejected the offer and criticised MEXC for flagging safety concerns about flights to foreign countries under the circumstances.
“The code-inducing is on the rise. Why do people with more than $100 million in chains agree to fly to other countries and enter the lion’s nest of an organization he is publicly protesting?”
MEXC says it won’t freeze assets for no reason
A MEXC spokesperson told Cointelegraph that it “complies strictly with risk management policies and does not freeze assets without a valid reason.”
MEXC said it could take action in response to price manipulation, washing, self-dealing, front-running, fraudulent trading and false citations.
The spokesman did not address the trader’s claim that he would be offered to fly to Malaysia to resolve the situation.
Crypto Trader has put pressure on MEXC to release funds
Crypto Whale added that he has completed all other KYC checks, including facial verification, phone number and home address, noting that MEXC’s Terms of Service does not mention in-person KYC.
Earlier on Monday, the White Whale launched a $2 million social media pressure campaign against MEXC to hand over the funds.
The campaign involves Crypto Traders creating free, non-fan tokens (NFTs) on the base network and tagging MEXC or its Chief Operating Officer’s X account with the “#FreethewHiteWhale” tag.
When MEXC releases frozen funds to complete the task, the $1 million USDC (USDC) prize money will be split equally between the first 20,000 NFT holders.
White Whale is not the first MEXC user to complain
MEXC’s comments on the Cointelegraph were similar to the company’s statement in March, in response to a series of “unfounded allegations” regarding the freeze on customer assets.
Related: Coinbase Data Scandal Calls to Scrap KYC
Another MEXC user, Pablo Ruiz, said that over $2 million Tether (USDT) Stablecoin was frozen in April for a “risk control” protocol without prior notice, explanation or opportunity for cooperation.
Lewis said, “With the activation of risk control, account reviews will take 365 days. Please contact us again on April 17, 2026.”
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