A crypto whale who has $3.1 million in funds frozen on crypto change MEXC claims he was instructed to fly to Malaysia to show his identification in individual to have his funds launched shortly.
According to screenshots shared by the pseudonymous crypto dealer “White Whale” MEXC’s world head of customer support provided him an “unique invitation” to Malaysia to have an “in-depth communication with the management crew” in regards to the frozen belongings.
The reported transfer can be exterior the norm for crypto exchanges. Know Your Customer options usually contain proof of deal with, verification of supply of funds, identification, and different paperwork that may be despatched on-line.
Screenshots of emails and Telegram chats shared by the dealer additionally counsel that MEXC tried to lure them with a possible partnership and “buying and selling perks,” however the crypto dealer rejected the provide, criticizing MEXC for utilizing coercive techniques whereas flagging security issues about flying to a overseas nation below the circumstances.
“Crypto kidnappings are on the rise – why would somebody with over $100M on-chain ever conform to fly to a different nation and enter the lion’s den of a corporation he is publicly protesting in opposition to?”
MEXC says it doesn’t freeze belongings with out motive
A MEXC spokesperson instructed Cointelegraph that it “strictly adheres to threat administration insurance policies and doesn’t freeze belongings with out legitimate causes.”
MEXC mentioned it might take measures in response to cost manipulation, wash buying and selling, self-trading, front-running, fraudulent buying and selling and false quoting.
The spokesperson didn’t deal with the dealer’s claims of being provided to fly to Malaysia to resolve the scenario.
Crypto dealer has been pressuring MEXC to launch funds
The crypto whale added he has accomplished all different KYC checks, together with face verification, telephone quantity, and residential deal with, and famous that MEXC’s Terms of Service makes no point out of in-person KYC.
Earlier on Monday, White Whale launched a $2 million social media strain marketing campaign in opposition to MEXC in an try and make them hand the funds over.
The marketing campaign entails crypto merchants minting a free non-fungible token (NFT) on the Base community and tagging MEXC or its chief working officer’s X account with the “#FreeTheWhiteWhale” tag.
For finishing the duties, a $1 million USDC (USDC) bounty can be cut up equally between the primary 20,000 NFT holders, supplied that MEXC releases the frozen funds.
White Whale isn’t the primary MEXC consumer to complain
MEXC’s feedback to Cointelegraph had been just like the corporate’s assertion in March, in response to a collection of “ungrounded allegations” relating to the freezing of buyer belongings.
Related: Coinbase information scandal sparks calls to scrap KYC
Another MEXC consumer, Pablo Ruiz, mentioned over $2 million price of the Tether (USDT) stablecoin was frozen in April as a consequence of a “threat management” protocol with out prior discover, clarification, or a possibility to cooperate.
Ruiz mentioned he was met with automated-looking copy-paste responses, with one line stating: “Due to threat management activation, your account assessment will take one year. Contact us once more on 04/17/2026.”
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