A major cryptocurrency exchange has reversed course and publicly apologized, releasing $3.1 million in frozen funds after months of public pressure from a trader and his online community.
MEXC’s Director of Strategy, Cecilia Hsueh, issued a public apology on X (formerly Twitter), admitting the company “acted wrong” and that she “communicated wrongly” and “got emotional” in handling the case. The funds were returned to the trader known as “White Whale.”
White Whale had his funds blocked for three months, with MEXC initially citing “risk control rules.” The trader quickly launched a public campaign, criticizing the exchange’s lack of transparency and the risks of centralized platforms.
He plans to distribute the entire $3 million among 20,000 followers who supported his campaign and various non-profit organizations. White Whale also pledged to investigate hundreds of similar cases of users with frozen funds.
While White Whale appreciated the gesture, he noted the apology did not specify the exact reasons for MEXC’s actions or acknowledge “unfounded accusations” that had depicted him as a criminal or scammer in earlier communications.
The controversy drew significant attention within the cryptocurrency community, highlighting the power imbalance between exchanges and their users. One Reddit user commented that MEXC only reacted “when Internet intervened,” underscoring the impact of social media advocacy.
The exchange’s native token, MX, saw a decline of approximately 3.5% after the apology was published, according to data from analytics firm Nansen. The token fell from $2.30 to $2.22.
The incident began in July when MEXC first froze White Whale’s assets. He later stated that the exchange demanded he travel to Malaysia to resolve the issue and reclaim his money.