MEXC Asks Crypto Trader to Fly to Malaysia to Unfreeze $3.1M in Suspicious Move

MEXC Global has demanded a high-profile crypto trader known as “ The White Whale ” travel to Malaysia for in-person verification to unlock over $3.1 million in frozen ￰0￱ demands came despite the trader already completing multiple KYC requirements, including live video verification, address proof, and phone number ￰1￱ exchange’s Global Head of Customer Service, Derrick, personally extended the invitation, offering a “ VIP experience ” and luxury accommodations while insisting that face-to-face meetings are necessary to complete the verification process. Update: MEXC Attempts To Lure The White Whale To Meet In Person…For Potentially Sinister Reasons??

I received an email from MEXC (with my anti-phishing code and from their official domain). I triple-verified – it was ￰2￱ email claimed: “Our leadership team… — The White Whale (@TheWhiteWhaleHL) August 25, 2025 Security Concerns Mount as Crypto Kidnappings Rise Globally The controversial demand comes amid growing concerns about crypto-related kidnappings and security risks facing high-net-worth ￰3￱ White Whale, who claims to hold over $100 million in on-chain assets, rejected the meeting proposal, citing personal security concerns and noting that MEXC’s Terms of Service contain no requirements for in-person KYC ￰4￱ froze the trader’s account in July 2025 under vague “ risk control ” protocols without prior notice or clear ￰5￱ the trader expressed reluctance to travel, Derrick’s response was telling: “ But I understood that you have sought to expedite the unfreezing of your account ,” essentially linking fund access to the Malaysia meeting ￰6￱ incident has sparked widespread social media backlash under the hashtag #FreeTheWhiteWhale , with multiple users reporting similar account freezes and fund seizures by ￰7￱ Doubles Down Despite Missing Legal Basis for In-Person Demands MEXC’s persistence in demanding face-to-face verification lacks foundation in their published terms of service, raising questions about the exchange’s compliance ￰8￱ the Malaysia proposal was rejected, Derrick suggested Hong Kong as an alternative location, claiming it would be “ one of the safest countries ” for the ￰9￱ exchange representative acknowledged the unusual nature of their request, stating, “ this is indeed not a usual process, but I am really trying to help out for your appeal. ” He characterized the in-person meeting as part of a “ manual verification process as an exception ” to facilitate the fund release ￰10￱ White Whale has already completed extensive verification procedures accepted by MEXC during previous reviews, including liveness checks, address verification, and phone number confirmation.) July 13, 2025 MEXC informed Ruiz that his account review would take 365 days, with instructions to “contact us again on 04/17/2026.” The exchange provided contradictory information, at one point claiming the risk control process was completed while support insisted the review remained ￰11￱ incidents from 2024 included “clawback” allegations where MEXC reportedly reversed profitable trades and confiscated funds from user ￰12￱ “ Al Gore Rhythms ” had $33,658 deducted from his spot account, with MEXC claiming they have “taken measures to recover the losses incurred” due to “abnormal trading activities.” Another case involved CoackKCrypto, who alleged MEXC seized $330,000 “due to abnormal profit” without clear justification or due ￰13￱ reported that MEXC deleted transactions from their history and provided automated responses rather than substantive explanations for enforcement ￰14￱ offshore exchange operates with less regulatory oversight than publicly listed U.

S. companies, potentially contributing to inconsistent enforcement ￰15￱ enforcement entities continue investigating various offshore exchanges following the FTX collapse, while users increasingly question custodial risks associated with centralized platforms lacking transparent dispute resolution ￰16￱ the time of publication, the MEXC team has neither released the funds nor provided any clarity on the matter.