Crypto trader White Whale has revealed instances of funds being frozen on the MEXC platform and the necessity for in-person verification, raising criticism from the community.
White Whale's Accusations
Prominent crypto trader known as White Whale has accused the global exchange MEXC of freezing his funds amounting to $3.1 million. He further claimed he was asked to travel to Malaysia for in-person identity verification despite already completing verification online. According to the trader, such a requirement is unusual in the crypto industry, where KYC checks are typically conducted remotely.
Pressure Campaign Against MEXC
In response to the freezing of funds, White Whale launched a pressure campaign against the platform, offering $2 million in bounty rewards and NFTs to rally support for the release of his assets. Participants in the campaign can mint free NFTs and use the hashtag #FreeTheWhiteWhale. If successful, he promises to distribute $1 million in USDC among 20,000 NFT holders.
Issues Faced by Other Traders
The situation involving White Whale has drawn attention to the problems faced by other traders on centralized exchanges. A user named Pablo Ruiz also reported his account holding over $2 million in USDT being frozen on MEXC. He stated that the exchange informed him his account would remain under review for 365 days. This incident underscores the need for increased transparency in the operations of centralized exchanges.
The freezing of funds experienced by trader White Whale raises serious concerns regarding transparency and practices of centralized crypto exchanges. This incident is expected to increase pressure on exchanges to improve customer interaction and oversight.
