MEXC Fund Freeze Ends: $3.1M Released, MX Token Falls 3.5%
MEXC has ended its controversial fund freeze by releasing $3.1 million to the pseudonymous trader known as White Whale. The exchange froze the assets in July under automated AML risk control protocols without prior notice. In response, White Whale launched a $2.5 million social media campaign pressing MEXC to resolve the issue, including calls for action in Malaysia. On October 3, 2025, Chief Strategy Officer Cecilia Hsueh publicly apologised for mishandling communication and confirmed the funds were available for withdrawal. The trader plans to distribute the recovered capital to 20,000 supporters and charitable causes. The episode has drawn criticism of MEXC’s fund freeze policies, with reports of hundreds of similar automatic holdings blocks. Following the apology, MEXC’s native MX token fell 3.5% from $2.30 to $2.22 (Nansen data). This MX token decline underscores shaken confidence among crypto traders. The incident highlights the need for clearer communication and transparent risk management in centralized exchanges.
Bearish
The release of $3.1M and apology resolved the dispute but highlighted the fragility of MEXC’s automated fund freeze system. In the short term, the MX token fell 3.5% as traders reacted to the uncertainty and perceived risk in exchange operations. This drop reflects immediate market sensitivity to operational transparency and risk control failures. In the long term, if MEXC implements clearer communication protocols and transparent risk management, confidence in MX could gradually recover. However, recurring incidents may sustain negative sentiment, prolonging bearish pressure on the token.