White Whale Raises MEXC Bounty to $2.5M Over KYC Dispute
Crypto trader “White Whale” has increased the MEXC bounty to $2.5 million after the exchange froze $3.1 million of his assets and demanded in-person KYC in Malaysia.
He launched the social media #FreeTheWhiteWhale campaign to pressure MEXC to release funds. The bounty now includes $250,000 for minting a free Base network NFT tagged #FreeTheWhiteWhale and another $250,000 for charity donations.
The trader alleges MEXC breached its own terms by imposing offline identity checks. MEXC defends the asset freeze and 365-day review as standard risk control for high-risk accounts.
Another user, Pablo Ruiz, reports $2.08 million USDT frozen under similar conditions. The dispute underscores the risks of account freeze and opaque KYC policies on centralized exchanges. Crypto traders may become wary of similar compliance requirements in future.
Bearish
In the short term, the dispute may trigger selling pressure on MEXC’s token as traders react to asset freezes and opaque KYC demands. Crypto traders view forced in-person verification and prolonged account reviews as heightened compliance risks. Over the long term, repeated incidents could erode trust in centralized exchanges, leading users to favor decentralized alternatives or stricter-regulated platforms. This could weigh on MEXC’s trading volume and platform token value. Overall, the news is likely to have a bearish impact on market sentiment towards MEXC.