MEXC Freezes $3.1M Funds, Asks Crypto Whale to Fly to Malaysia for Release

TLDR

• MEXC reportedly froze $3.1M in assets and asked the trader to fly to Malaysia for in-person identity verification.

• Trader criticized MEXC for using coercive tactics and raised concerns about security risks.

• MEXC claims it freezes funds for valid reasons but did not address the in-person verification request.

• Similar reports from other MEXC users suggest a pattern of arbitrary fund freezes and poor customer support.

A crypto trader, identified as “White Whale,” has come forward with a shocking claim: the exchange MEXC froze $3.1 million of their assets and insisted they travel to Malaysia to resolve the issue. According to screenshots shared by the trader, MEXC’s global head of customer service offered the trader an “exclusive invitation” to fly to Malaysia for a face-to-face meeting with the leadership team to discuss the frozen funds.

This request has raised alarm in the crypto community, as it falls outside of standard Know Your Customer (KYC) procedures, which are typically handled remotely via document uploads and video verifications.

MEXC’s Unusual Request Sparks Concerns

The unusual demand came after MEXC froze the trader’s account in July 2025, citing “risk control” measures. Despite the trader completing standard KYC checks, including identity verification, phone number confirmation, and address proof, MEXC insisted that an in-person meeting was required to unfreeze the funds.

The trader rejected the offer, citing personal safety concerns amid the rising number of crypto-related kidnappings. They questioned why additional verification was being demanded when they had already complied with MEXC’s usual procedures.

“Why would someone with over $100M on-chain ever agree to fly to another country and enter the lion’s den of an organization he’s publicly protesting against?” the trader remarked.

Screenshots shared by the trader show MEXC’s offer of luxury accommodations and potential trading perks, but these tactics have been criticized as coercive. The trader also pointed out that MEXC’s Terms of Service do not mention any in-person KYC requirement, raising further doubts about the legitimacy of the exchange’s request.

MEXC’s Response and Customer Backlash

MEXC responded to the claims, stating that it strictly follows risk management policies and only freezes assets for valid reasons. However, the exchange did not directly address the in-person meeting demand.

“We do not freeze assets without valid reasons,” a MEXC spokesperson said, citing potential reasons such as price manipulation or fraudulent trading activities. However, the company did not provide any clear explanation or justification for its request for an in-person meeting.

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The incident has sparked a backlash on social media, with traders using the hashtag #FreeTheWhiteWhale to demand the release of the frozen funds. The incident mirrors earlier complaints from other MEXC users who have faced similar issues with frozen accounts and inadequate customer support.

A Pattern of Arbitrary Freezes and User Complaints

This is not the first time MEXC has been accused of arbitrarily freezing assets. In April 2025, another user, Pablo Ruiz, reported that over $2 million worth of USDT was frozen due to a “risk control” protocol without prior notice or explanation. Ruiz was also met with vague responses and told his account review would take a year, with a date set for 2026.

Other users have shared similar stories, with some alleging that MEXC has seized profits and confiscated funds due to “abnormal trading activities.” The exchange reportedly provided only automated responses, failing to offer adequate support or explanations.

These incidents highlight concerns about MEXC’s customer service and its lack of transparency regarding the reasons for freezing accounts and assets. The exchange’s failure to address these issues adequately has raised questions about its compliance with standard industry practices.

Growing Security Concerns in the Crypto Industry

The growing number of crypto-related kidnappings and security risks facing high-net-worth individuals has raised alarms within the industry. As crypto assets become more valuable, the risks associated with physical threats to traders and investors have increased. The White Whale’s refusal to fly to Malaysia underscores these concerns, particularly as the trader holds significant assets in the crypto space.

As the crypto industry continues to grow, exchanges will need to address security concerns and adopt transparent, industry-standard procedures for account freezes and asset management. Failure to do so may lead to further erosion of trust in centralized platforms.

At the time of publication, MEXC has not released the trader’s funds or provided further clarification on the situation.