MEXC Faces User Backlash and Bitcoin Withdrawals
MEXC, one of the largest global crypto exchanges, is experiencing growing user backlash. Many users have withdrawn significant amounts of Bitcoin since mid-2025. On-chain data from CryptoQuant shows a sharp increase in Bitcoin outflows from MEXC during this period. This spike follows rising concerns about the exchange’s transparency and management.
Frozen Funds Accusations Spark Controversy
The controversy started after trader The WhiteWhale publicly accused MEXC of freezing over $3 million in his funds. He claimed his account was locked for being “too profitable.” In September 2025, he launched a $2 million social media campaign with a bounty for users minting NFTs and tagging MEXC with #FreeTheWhiteWhale. This campaign gained traction, drawing attention from crypto community members and independent investigator zZachxbt.
Crypto commentator James Rucker (JT) on X called MEXC a “mafia exchange.” He urged anyone with additional information, including details about an alleged insider known as “Tony,” to contact Zachxbt.
MEXC’s Apology and Industry Reactions
In a rare public statement, Cecilia Hsueh, MEXC’s Chief Strategy Officer, admitted mistakes. She apologized to The WhiteWhale and confirmed that his funds had been released. Hsueh acknowledged communication failures during the dispute.
Her statement triggered strong reactions from industry figures. One comment claimed that “MEXC is insolvent,” reflecting wider skepticism about the exchange’s stability and promises.
MEXC has remained mostly silent beyond this apology. Its unclear dispute history raises doubts about promised reforms and the exchange’s accountability. The events underscore ongoing concerns about transparency at centralized exchanges.
