Update Aug. 25, 1:25 p.m. UTC: This article has been modified to include comments from a MEXC spokesperson.
A cryptocurrency trader has initiated a $2 million social media campaign against MEXC, claiming the exchange has unjustly frozen over $3 million of his personal funds.
In July 2025, the centralized cryptocurrency exchange (CEX) MEXC reportedly froze $3.1 million of the trader’s personal funds without any breaches of its terms of service, according to the pseudonymous trader known as the White Whale.
The trader is now launching a $2 million social media campaign, asserting that MEXC demanded a one-year review before unfreezing his funds.
“I’m Putting a $2M Bounty Up For Grabs (half can be claimed by YOU),” wrote the White Whale in a post on Sunday on X post, adding:
“What type of review lasts 12 months – with zero updates, documents, or charges?”
The trader noted that several other traders are similarly affected by account freezes and emphasized that the industry’s top performers are often “penalized for success.”
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In response to his account suspension, the trader initiated a campaign encouraging users to mint a free non-fungible token (NFT) on the Base network, tag MEXC or its chief operating officer on X with the “#FreeTheWhiteWhale” hashtag, and update their profile pictures to the aforementioned image.
Upon completing these actions, $1 million of the bounty will be divided among the first 20,000 NFT holders, granting each $50 USDC (USDC), contingent on MEXC releasing the frozen funds.
An additional $1 million in USDC will be allocated to “verified, diligently vetted charities,” with the trader assuring that onchain receipts will follow the donations.
The trader asserted that he has already passed the exchange’s Know Your Customer (KYC) verification process.
“Account restrictions and freezes are strictly imposed because they activated our risk control protocols, not due to profitability,” a spokesperson for MEXC told Cointelegraph, stating that the exchange has instituted reinforced risk control measures.
“During our review, we found that certain user funds posed potential risks. Consequently, we imposed temporary withdrawal restrictions and required advanced KYC verification from those users,” the spokesperson explained.
Regarding the 12-month review period, this applies “only to accounts connected to coordinated violations, high-risk accounts, or compliance-related risks, and does not affect all users following risk control measures.”
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“White whale” asserts to have outperformed MEXC market makers prior to $3 million freeze
The trader contended that his funds were frozen because he was more lucrative than MEXC’s crypto market makers, who provide liquidity through consistent buy and sell orders to facilitate smooth transactions.
“Was my only real transgression? I was too profitable,” wrote the pseudonymous trader, adding:
“I consistently outperformed their external market makers – the entities they quietly collaborate with to serve as the counterparty to trades (this is confirmed public record).”
Crypto market makers are often misunderstood within the digital asset ecosystem, frequently being criticized by traders for purportedly manipulating cryptocurrency prices, despite a lack of substantiating evidence.
Nevertheless, a report from Acheron Trading indicated that 78.5% of new crypto launches between April and June 2024 were executed in a manner that disrupted fair price discovery, adversely impacting both end-users and the respective projects.
Moreover, 69.9% of primary token listings were classified as “Parasitic,” indicating that market makers exploited premarket conditions by generating artificial scarcity and sentiment around the token.
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