Interview with The White Whale and MEXC – Truth Behind The $3 Million Frozen Funds

The trader known as The White Whale has broken his silence in an exclusive conversation with BeInCrypto. He offered his first-hand account of the controversy surrounding MEXC and the freezing of more than $3 million of his funds.

His remarks shed new light on a saga that sparked debates across Crypto Twitter, ignited a grassroots support campaign, and put centralized exchange (CEX) accountability under the spotlight.

White Whale Rejects MEXC’s $3 Million Freeze as Exchange Faces Mounting Scrutiny

In crypto, there’s rarely such a thing as an isolated dispute. A single trader’s locked funds can become the spark that ignites wider questions about trust, transparency, and whether CEXs are still safe places to trade.

That’s exactly what happened in The White Whale. The high-profile trader says MEXC froze $3.1 million of his funds and gave “absurd” and “unwritten” ultimatums.

MEXC’s demand that he fly to Malaysia for in-person verification is at the heart of the dispute. For the White Whale, this is where the principle hardens into an absolute no.

“The only acceptable resolution is simple: release my funds immediately. I’m not a criminal. I’ve broken no rules. Meanwhile, MEXC is breaking their Terms of Service by insisting the only resolution is a face-to-face, in-person meeting—something that appears nowhere in their user agreement,” he started.

Speaking to BeInCrypto, The White Whale said he initially considered the demand, but his security team insisted safety could not be guaranteed in a foreign jurisdiction.

“I have a wife and two young daughters at home. Some things are worth more than money,” he explained.

However, even beyond the safety concern, he insists the demand is unacceptable because it rewrites the rules.

“Exchanges like MEXC don’t get to change the rulebook whenever they feel like it. They gave me a set of rules in their Terms of Service. I followed those rules. Now they’re moving the goalposts in the middle of the game. That’s not happening—not for me or anyone,” he stated.

MEXC Cites Compliance Risk

To ensure unbiased reporting, BeInCrypto also reached out to MEXC for an official response to The White Whale’s accusations and claims.

The exchange did not clarify the ‘in-person KYC’ policy, citing regulatory requirements. MEXC spokesperson mentioned that commenting on The White Whale’s KYC allegations would constitute “tipping off.”

BeInCrypto asked MEXC about the screenshots circulating online, showing the exchange’s representative directly asking the victim to travel to Malaysia and verify his identity. In response, MEXC said the following:

“MEXC has recently continued to enhance its risk control framework, with a particular focus on strengthening compliance risk management. During our review, we identified that certain user funds carried potential risks. Consequently, we imposed temporary withdrawal restrictions and required the affected users to complete advanced KYC verification. MEXC strictly adheres to compliance requirements and reports suspicious transactions and accounts. Related compliance reports were submitted in July and August,” said an MEXC spokesperson.

Legal Action Against MEXC is Not an Option for The White Whale

One of the most striking parts of this case is The White Whale’s admission that legal recourse is essentially off the table.

While he revealed having access to great attorneys, they have reportedly told him the structure of MEXC’s entity and Terms of Service make legal resolution next to impossible by design.

That, he argues, is precisely the point of his campaign. If traders cannot rely on the courts, collective pressure becomes the only weapon.

“The voice of the people is all that’s left. That’s why I’m doing this,” The White Whale articulated.

From Cockpit Discipline to Crypto Warfare: A Fight For CEX Transparency?

In the interview, The White Whale described his approach to trading through the lens of his former career as a pilot, where discipline was paramount.

“Before you perform a checklist on the aircraft, you perform a checklist on yourself. If tired, emotional, stressed, or distracted, you don’t fly. That same principle applies to trading. Discipline starts before the trade,” he said.

Yet, that discipline has been tested in recent weeks. Instead of poring over data and setups, he’s been forced into a public battle with one of the industry’s largest exchanges.

“The distraction has probably cost me more in missed trading opportunities than the funds I’m even trying to recover, most of which I’m giving away. But some fights are worth the cost. This is one of them,” he said.

The turning point came when The White Whale launched a $2 million bounty campaign, tied to an NFT (non-fungible token) claim system.

This helped him draw attention to his case and rally community support. Within days, reportedly, over 24,000 wallets had signed up.

However, the White Whale said it wasn’t about the money. Rather, it was about the principle.

“If I have to keep scaling it up to eventually 100%, I’m willing to do that,” he noted.

The campaign has had ripple effects inside MEXC itself. BeInCrypto received reports that this particular issue has been a constant topic at the company’s recent internal retreat in Bali.

The White Whale insists his case is far from unique, noting that hundreds of traders have the same story.

“They can’t all be bad actors. Something is fundamentally wrong at MEXC,” he observed.

When asked about other centralized exchanges, The White Whale mentioned that he never had any issues with any other exchanges. Most of his trades are currently on Hyperliquid, but his negative experience so far has only come from MEXC.

Proof-of-Reserve Concerns

This taps into a wider issue that crypto has wrestled with since the collapse of FTX in 2022: the reliability of CEXs and their proof-of-reserves (PoR) practices.

While many CEXs rushed to publish audits or dashboards after FTX’s implosion, critics argue that most of these “proofs” are little more than screenshots of internal numbers.

The White Whale is not the first user to criticize MEXC in recent times. There has been several concerns flagged across social media.

BeInCrypto asked the exchange about allegations of non-transparency and issues with its proof-of-reserve. The exchange denied any claims about misconduct and provided technical details of its reserve structure.

The exchange said that instead of third-party audits, it discloses all wallet addresses and source code, enabling users to conduct independent verification. The platform provides a verifiable proof mechanism.

Our proof of reserves uses a Merkle Tree structure, which is fully transparent and allows any user to independently verify. In addition, MEXC previously established a $100 million Guardian Fund to safeguard user assets, with the address publicly disclosed for verification

What It Means for Crypto

The White Whale’s campaign strikes at a deeper unease in crypto. On the one hand, there’s the tension among traders who value transparency. On the other hand, centralized platforms still operate with opaque structures.

Since FTX, Binance exchange, and others have all faced heightened scrutiny over their balance sheets and reserve reporting.

For the White Whale, the question is not just about his $3 million. Rather, it is about whether the industry will tolerate exchanges that make arbitrary demands and enforce rules not written into contracts.

In the meantime, the standoff continues, with MEXC not budging on its requirement for in-person KYC.

“Our priority is to ensure that all procedures, including KYC and risk control compliance review, are transparent, standardized, and aligned with global regulations. Clear and transparent policies govern all user procedures, and any official communication from MEXC will always align with these standards,” MEXC had told BeInCrypto.

On his part, the White Whale vows not to comply. Instead, he continues to publish daily updates, keeping the campaign alive and the pressure mounting.

Whether or not MEXC relents, the case already serves its purpose, compelling the crypto community to revisit the core question of trust in centralized platforms.

This question could not be more urgent in a market still haunted by the ghosts of collapsed exchanges.