In a bold move, a pseudonymous cryptocurrency trader known as ‘White Whale’ has ramped up his campaign against the centralized exchange (CEX) MEXC, increasing the ‘bounty’ to $2.5 million. This escalation follows allegations that the exchange froze $3.1 million of the trader’s personal funds without any service violations and reportedly demanded an in-person verification in Malaysia to release the funds.
A $2 Million Campaign Takes Center Stage
The initial social media campaign, launched in July 2025, was aimed at shining a spotlight on what the trader claims to be unfair practices. As part of this campaign, participants were encouraged to join the movement by minting a free non-fungible token (NFT) on the Base network and using the hashtag ‘#FreeTheWhiteWhale’ when tagging MEXC or its chief operating officer on X (formerly Twitter). Now, the trader has added an additional $250,000 to encourage participation and another $250,000 for charity donations.
In his X post, the White Whale declared, “We need to remind them: The minnows are becoming sharks—and yes, even whales. We’re not your prey anymore.”
Allegations and MEXC’s Response
According to reports, MEXC froze the trader’s account for a 12-month period, citing ‘risk control rules’ as the reason. However, these claims have sparked heated discussions online, with other traders also stepping forward to share similar experiences. Notably, the exchange reportedly declined to provide a clear violation guideline for these restrictions.
MEXC has defended its decision, clarifying that the review process applies exclusively to accounts flagged for high-risk activity, coordinated policy violations, or compliance-related risks. A company spokesperson noted, “Account restrictions are imposed strictly because they triggered our risk control rules, not due to profitability.”
KYC Controversy: An Unusual Request
The White Whale further claimed that MEXC requested an in-person identity verification in Malaysia, a step that deviates from the industry norm where identity verification typically involves submitting online documents, such as proof of address and government-issued ID.
“I’m not a dog to come when summoned—not for any amount of money. And I don’t need to,” the trader declared, emphasizing his refusal to comply with the unusual request.
Other Traders Speak Out
White Whale isn’t the only crypto user to face such issues with frozen funds. Another trader, Pablo Ruiz, reported that his account was frozen in April for reasons he described as vague and lacking transparency. Ruiz voiced his frustration, noting that nearly three months later, his $2 million USD in assets remains inaccessible despite receiving conflicting updates about the review process.
What’s Next for Crypto Traders?
The growing stories of frozen funds and lack of transparency are igniting concerns across the cryptocurrency community. As centralized exchanges like MEXC impose strict risk control measures, traders and investors are left questioning the balance between platform security and user autonomy.
Key Takeaway
For crypto enthusiasts looking to protect their investments, decentralization and self-custody options are becoming increasingly attractive. Products like the Ledger Nano X, a popular hardware wallet, provide an extra layer of security for anyone wanting to maintain full control over their digital assets.
As the crypto landscape continues to evolve, incidents like this underline the importance of reading terms of service carefully and increasing awareness about the risks of concentrated power in centralized exchanges.
