Key Takeaways
Why did MEXC freeze TheWhiteWhaleV2’s account?
MEXC claimed the trader used bots to generate “illicit profits,” though TheWhiteWhaleV2 insisted all trades were manual.
What triggered MEXC to reverse its decision?
On-chain investigator Zachxbt questioned MEXC’s ownership structure, sparking mass withdrawals and community backlash.
Cryptocurrency exchange MEXC released approximately $3.1 million in frozen assets to prominent trader TheWhiteWhaleV2 on 31 October after intense community pressure forced a rare public apology.
Source: X
The resolution came days after questions about the exchange’s ownership threatened a full-scale crisis of confidence.
The freeze and the standoff
MEXC froze TheWhiteWhaleV2’s account months ago, alleging he used automated bots to exploit trading rules. The trader denied the claims and provided evidence of manual trading; however, it was not enough to get the funds released.
Tensions peaked on 29 October when TheWhiteWhaleV2 revealed MEXC demanded a public confession of wrongdoing before releasing his funds. He refused, calling the condition defamatory.
Community pressure forces MEXC’s hand
The situation exploded on 31 October when on-chain investigator Zachxbt questioned MEXC’s opaque ownership, specifically asking about a mysterious figure called “Tony” mentioned in internal Telegram channels.
Users reported massive withdrawal spikes. Stories of indefinite account freezes flooded social media.
Within hours, MEXC Chief Strategy Officer Cecilia Hsueh issued a blunt apology:
“We fucked up. I take full responsibility… The funds are released.”
She acknowledged emotional missteps and promised reforms to risk control and communications teams.
TheWhiteWhaleV2 confirmed access to his funds and announced plans to airdrop 100% of recovered assets to his NFT community and select nonprofits.
Exchange volume drops amid crisis
CoinGecko data shows MEXC’s 24-hour trading volume dropped from approximately $6 billion to below $5 billion during the crisis. A decline of over 15% as users rushed to withdraw funds.
Source: Coingecko
The sharp volume drop illustrates how quickly trader confidence can evaporate when ownership questions emerge.
What this means for traders
TheWhiteWhaleV2 called for structural reforms, including no permanent fund confiscation, mandatory review timelines, and increased transparency.
He noted his resolution came through public pressure and influencer amplification—advantages most traders lack.
Hundreds of users report similar freezes lasting over a year with minimal explanation.
The incident highlights a persistent problem in centralized exchanges: high-profile traders with large followings can exert pressure through public scrutiny, while smaller users remain vulnerable to opaque enforcement.
Withdrawal volumes have stabilized since the apology, but trust remains fragile.
