A crypto whale with $3.1 million locked on the MEXC exchange claims he was advised to travel to Malaysia to verify his identity in person for a quicker release of his funds.
According to images shared by the pseudonymous trader “White Whale,” MEXC’s global customer service head extended an “exclusive invitation” to Malaysia for an “in-depth discussion with the leadership team” regarding his frozen assets.
This suggested action is unusual for crypto exchanges. Standard Know Your Customer processes typically require proof of address, source of funds verification, identification, and other documents that can be submitted online.
Screenshots of email and Telegram conversations presented by the trader indicate that MEXC attempted to entice him with potential partnerships and “trading perks,” which he declined, criticizing MEXC for its coercive tactics and expressing safety concerns about traveling to a foreign country under these circumstances.
“Crypto kidnappings are on the increase – why would someone with over $100M on-chain ever agree to fly to another country and step into the lion’s den of an organization he’s publicly protesting against?”
MEXC asserts it does not freeze assets without justification
A spokesperson from MEXC informed Cointelegraph that the company “strictly follows risk management policies and does not freeze assets without valid reasons.”
MEXC stated it may take action in cases of price manipulation, wash trading, self-trading, front-running, fraudulent transactions, and false quoting.
The spokesperson did not respond to the allegations regarding the invitation to travel to Malaysia to resolve the issue.
Crypto trader urges MEXC to release his funds
The crypto whale mentioned he has fulfilled all other KYC requirements, including face verification, phone number, and home address, and pointed out that MEXC’s Terms of Service do not reference in-person KYC.
Earlier on Monday, White Whale initiated a $2 million social media campaign targeting MEXC to pressure them into releasing the funds.
The campaign involves crypto traders minting a free non-fungible token (NFT) on the Base network and tagging MEXC or its COO’s X account with the “#FreeTheWhiteWhale” hashtag.
For completing the actions, a $1 million USDC (USDC) reward will be shared equally among the first 20,000 NFT holders, contingent upon MEXC releasing the frozen assets.
White Whale isn’t the first MEXC user to voice complaints
MEXC’s responses to Cointelegraph echoed earlier statements made in March, addressing a series of “unfounded allegations” concerning the freezing of customer funds.
Related: Coinbase data scandal ignites calls for KYC overhaul
Another MEXC user, Pablo Ruiz, reported having over $2 million worth of Tether (USDT) frozen in April due to a “risk control” protocol without prior notification, explanation, or any opportunity for collaboration.
Ruiz noted he received canned, automated responses, including one stating: “Due to risk control activation, your account review will take 365 days. Contact us again on 04/17/2026.”
Magazine: Solana Seeker review: Is the $500 crypto phone worth it?
