MEXC Global has demanded a high-profile crypto trader known as “The White Whale” travel to Malaysia for in-person verification to unlock over $3.1 million in frozen funds.
These demands came despite the trader already completing multiple KYC requirements, including live video verification, address proof, and phone number confirmation.
The exchange’s Global Head of Customer Service, Derrick, personally extended the invitation, offering a “VIP experience” and luxury accommodations while insisting that face-to-face meetings are necessary to complete the verification process.
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The controversial demand comes amid growing concerns about crypto-related kidnappings and security risks facing high-net-worth individuals.
The White Whale, who claims to hold over $100 million in on-chain assets, rejected the meeting proposal, citing personal security concerns and noting that MEXC’s Terms of Service contain no requirements for in-person KYC procedures.
MEXC froze the trader’s account in July 2025 under vague “risk control” protocols without prior notice or clear explanation.
When the trader expressed reluctance to travel, Derrick’s response was telling: “But I understood that you have sought to expedite the unfreezing of your account,” essentially linking fund access to the Malaysia meeting requirement.
The incident has sparked widespread social media backlash under the hashtag #FreeTheWhiteWhale, with multiple users reporting similar account freezes and fund seizures by MEXC.
Exchange Doubles Down Despite Missing Legal Basis for In-Person Demands
MEXC’s persistence in demanding face-to-face verification lacks foundation in their published terms of service, raising questions about the exchange’s compliance procedures.
After the Malaysia proposal was rejected, Derrick suggested Hong Kong as an alternative location, claiming it would be “one of the safest countries” for the meeting.
The exchange representative acknowledged the unusual nature of their request, stating, “this is indeed not a usual process, but I am really trying to help out for your appeal.”
He characterized the in-person meeting as part of a “manual verification process as an exception” to facilitate the fund release appeal.
The White Whale has already completed extensive verification procedures accepted by MEXC during previous reviews, including liveness checks, address verification, and phone number confirmation.
Source: X/@TheWhiteWhaleHL
The trader emphasized having provided all requested documentation and questioned why additional verification requirements emerged without clear justification.
MEXC’s approach contrasts sharply with standard industry practices, where remote KYC procedures typically suffice for account verification and fund access.
The exchange’s inability to point to specific terms of service provisions supporting their demands undermines the legitimacy of their verification requirements.
The situation escalated as MEXC attempted to frame the meeting as a collaboration opportunity, with Derrick mentioning “enhanced trading perks” and “exciting partnership opportunities” alongside the verification process.
However, the trader remained focused solely on fund recovery and account closure rather than on ongoing business relationships.
Pattern of Account Freezes Emerges as Users Report Similar Treatment
Multiple MEXC users have reported comparable experiences with arbitrary account freezes and questionable fund recovery procedures.
Pablo Ruiz documented losing access to $2.08 million USDT after his account was frozen on April 17, 2025, under “risk control” protocols with no clear explanation or appeal mechanism.
MEXC informed Ruiz that his account review would take 365 days, with instructions to “contact us again on 04/17/2026.”
The exchange provided contradictory information, at one point claiming the risk control process was completed while support insisted the review remained ongoing.
Previous incidents from 2024 included “clawback” allegations where MEXC reportedly reversed profitable trades and confiscated funds from user accounts.
Trader “Al Gore Rhythms” had $33,658 deducted from his spot account, with MEXC claiming they have “taken measures to recover the losses incurred” due to “abnormal trading activities.”
Another case involved CoackKCrypto, who alleged MEXC seized $330,000 “due to abnormal profit” without clear justification or due process.
Users reported that MEXC deleted transactions from their history and provided automated responses rather than substantive explanations for enforcement actions.
The offshore exchange operates with less regulatory oversight than publicly listed U.S. companies, potentially contributing to inconsistent enforcement practices.
Multiple enforcement entities continue investigating various offshore exchanges following the FTX collapse, while users increasingly question custodial risks associated with centralized platforms lacking transparent dispute resolution mechanisms.
At the time of publication, the MEXC team has neither released the funds nor provided any clarity on the matter.
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