A high-profile dispute between a pseudonymous crypto trader and centralised exchange MEXC has escalated, with the trader known as “White Whale” increasing his social media “bounty” campaign to $2.5 million. The campaign, aimed at pressuring the exchange to unfreeze his account holding over $3 million, has drawn wide attention across the crypto community.

The Dispute Over Frozen Funds

The controversy began in July 2025 when MEXC allegedly froze White Whale’s account containing $3.1 million in digital assets. The trader claimed that the freeze came despite no breach of the platform’s terms of service. According to him, MEXC informed him that his account was subject to a one-year review period before the funds could be released.

This prompted White Whale to launch a $2 million social media campaign in mid-August to highlight his case. The campaign invited other users to amplify the issue by tagging MEXC and its chief operating officer’s official accounts with the hashtag #FreeTheWhiteWhale. Participants could also mint a free NFT on the Base network as part of the effort.

On Tuesday, the trader announced that he had increased the campaign funds to $2.5 million, offering an additional $250,000 to users who join the campaign and promising another $250,000 donation to registered charities.

MEXC’s Stance on Account Restrictions

MEXC responded by saying that the trader’s account was flagged by its risk control rules, not because of profitability or trading success. A company spokesperson told Cointelegraph that the 12-month review period is “exclusively applied to accounts involved in coordinated violations, high-risk accounts, or compliance-related risks” and does not affect all accounts.

The exchange emphasised that account freezes are part of compliance measures, which they argue are standard practice. However, White Whale has insisted that the exchange is failing to follow its own stated rules. He particularly objected to what he claimed was a demand from MEXC to travel to Malaysia for in-person Know Your Customer (KYC) verification.

Typically, crypto exchanges only require online submission of documents such as proof of identity and address for KYC checks. “I’m not a dog to come when summoned – not for any amount of money. And I don’t need to,” wrote the trader on X, adding that such requests fall outside MEXC’s own rulebook.

Other Traders Report Similar Experiences

The White Whale case has highlighted growing dissatisfaction among users who claim to have faced unexplained account restrictions on MEXC.

One example is crypto trader Pablo Ruiz, who stated that his account holding over $2 million in USDT was suddenly frozen in April 2025 under a “vague risk control protocol.” According to Ruiz, nearly three months passed without resolution, even though he later received an email confirming that the risk control process had been completed. Despite this, customer support reportedly told him the review was still ongoing.

Source: Pablo Ruiz

Ruiz described this as an “internal contradiction” and accused the exchange of lacking transparency. His case, like White Whale’s, involves a 365-day restriction period that will not expire until April 2026.

Wider Concerns Over Transparency in Centralised Exchanges

The dispute has reignited debate over the risks of keeping large sums on centralised exchanges (CEXs). While CEXs provide liquidity and convenience, they also maintain full control over users’ assets, meaning that accounts can be frozen or subjected to review at the exchange’s discretion.

The White Whale case stands out not only for the scale of the funds involved but also for the trader’s decision to fight back publicly. By allocating millions of dollars to mobilise a social media movement, he has framed the conflict as a symbolic stand for ordinary crypto users. His rhetoric has emphasised that traders are no longer “prey” to exchanges and that collective action can apply pressure.

Still, the situation also reflects the tension between regulatory compliance and user expectations of fairness. Exchanges face growing scrutiny from regulators worldwide, which may explain increasingly strict risk control measures. However, without clear communication and transparent processes, such actions risk damaging user trust.

The White Whale vs. MEXC dispute is more than a single account freeze, it highlights the ongoing challenges between traders and exchanges in an industry still defining its standards of transparency and accountability. As the trader’s $2.5 million “bounty” campaign gains traction, pressure is building on MEXC to clarify its policies and justify its demands for in-person verification.