**MEXC Releases $3 Million Frozen Funds After Public Outcry, Issues Apology to Trader “The White Whale”**
Cryptocurrency exchange MEXC has released $3 million in frozen funds and issued a public apology to a trader known as “The White Whale” after months of dispute. The incident, which began in July, drew significant attention when prominent on-chain investigator ZachXBT publicly defended the trader.
### Background: Account Frozen Over Alleged Terms Violation
MEXC initially froze The White Whale’s account, claiming he violated its terms of service by placing two orders within one second. The exchange interpreted this as evidence of automated trading, which is prohibited. However, The White Whale denied the use of bots or APIs for his trades.
Following the freeze, MEXC informed the trader that his funds would be forfeited, prompting him to publicly demand the return of his money. Despite his efforts, the exchange remained silent for weeks, escalating tensions around the issue.
### ZachXBT’s Intervention Amplifies Pressure
The situation took a turn when ZachXBT, a well-known on-chain investigator, intervened in support of The White Whale. His involvement amplified calls for transparency and accountability from MEXC, drawing widespread attention across the crypto community.
### MEXC Chief Strategy Officer Apologizes and Releases Funds
On Thursday, Cecilia Hsueh, MEXC’s Chief Strategy Officer, issued a public apology via social media platform X. Acknowledging the company’s mishandling of the case, she candidly admitted, “We fucked up.”
Hsueh confirmed that the frozen funds had been released to The White Whale and expressed regret over the emotional communication during the dispute. She acknowledged that the situation should have been handled differently and vowed to improve company processes.
### Growing Pains: Operational Teams Struggle to Keep Up with Rapid Growth
Hsueh explained that MEXC had undergone rapid expansion in recent years, evolving from a small operation to one of the world’s top-10 exchanges by trading volume. However, she admitted that the company’s operational, risk, and public relations teams had not scaled adequately to manage this growth.
Describing these challenges as “growing pains,” Hsueh emphasized the need to address these operational shortcomings. To prevent similar incidents in the future, MEXC plans to implement a “fast-track channel” designed to expedite the resolution of account disputes.
Having joined MEXC just two months ago, Hsueh is actively working to lead these changes within the company.
### Community Reaction and Criticism
The controversy sparked criticism from many in the crypto community. Some traders pointed out that it took substantial public pressure to force MEXC into action, suggesting the outcome might have differed if The White Whale had fewer followers.
Responding to such critiques, Hsueh acknowledged the validity of the concerns, noting that mobilizing coordinated action across the entire company requires significant effort.
### Surge in Withdrawals Signals User Concerns
Data from on-chain analytics platform CryptoQuant revealed a dramatic increase in Bitcoin withdrawals from MEXC during the controversy. Daily withdrawals surged from approximately 40 per day to over 1,200 in mid-July—the time when The White Whale’s account was frozen.
Withdrawals remained elevated, with over 1,400 Bitcoin withdrawals processed on a single Friday following the incident. This spike reflects a significant drop in user confidence regarding the platform’s fund management.
Numerous users also came forward with similar complaints about frozen accounts. For example, trader Elja shared that although his issue was resolved after 14 days, he no longer trusts the exchange. Others alleged that their withdrawal requests had been ignored for over a year.
The White Whale reported receiving hundreds of messages from users experiencing frozen accounts, indicating a broader pattern of account management challenges within MEXC.
### Rumors Addressed: MEXC Denies Financial Instability
Amid the escalating controversy, speculation about MEXC’s financial health circulated on social media. The exchange strongly denied any bankruptcy rumors, affirming that all user assets remain fully backed and secure.
### Looking Ahead: Commitment to Transparency and Customer Service
MEXC’s leadership acknowledges the need for better transparency and customer service as the company continues to grow. The planned “fast-track channel” aims to streamline dispute resolutions and restore user trust.
While the episode has undoubtedly shaken confidence, MEXC is publicly committing to operational improvements to avoid such incidents in the future.
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*Stay tuned for further updates as MEXC works to rebuild trust within the crypto community.*
https://coincentral.com/mexc-unfreezes-3-million-after-wrongful-account-suspension-sparks-backlash/
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