MEXC Exchange Demands In-Person Meeting in Malaysia to Release Frozen $3.1 Million

Crypto Whale Faces Unusual KYC Requirements from MEXC Exchange

A cryptocurrency trader with $3.1 million in frozen funds claims MEXC exchange asked him to travel to Malaysia for an in-person identity verification. The pseudonymous trader known as "White Whale" shared screenshots showing MEXC's global head of customer service offering an "exclusive invitation" to Malaysia for "in-depth communication with the leadership team."

Unprecedented Request Raises Industry Concerns

This approach differs significantly from standard Know Your Customer procedures used by crypto exchanges. Traditional KYC verification typically involves submitting identification documents, proof of address, and source of funds verification online without requiring physical presence.

The trader rejected MEXC's offer, citing safety concerns about traveling to a foreign country under these circumstances. He highlighted the increasing risk of crypto kidnappings and questioned why someone with substantial cryptocurrency holdings would agree to such terms.

MEXC Defends Risk Management Policies

MEXC responded to inquiries by stating it "strictly adheres to risk management policies and does not freeze assets without valid reasons." The exchange explained it may freeze accounts in response to price manipulation, wash trading, self-trading, front-running, fraudulent trading, and false quoting activities.

However, MEXC did not directly address the claims about requesting an in-person meeting in Malaysia. The spokesperson did not explain why standard online verification procedures were deemed insufficient in this case.

Trader Launches $2 Million Social Media Campaign

Before the Malaysia meeting request, White Whale initiated a $2 million social media pressure campaign against MEXC. The campaign involves crypto traders minting free NFTs on the Base network while using the hashtag "FreeTheWhiteWhale" when tagging MEXC's social media accounts.

The campaign offers a $1 million USDC bounty to be split among the first 20,000 NFT holders if MEXC releases the frozen funds. This innovative approach demonstrates how blockchain technology can be used for coordinated advocacy efforts.

White Whale Claims Full KYC Compliance

The trader states he has completed all standard KYC requirements, including face verification, phone number confirmation, and address verification. He emphasized that MEXC's Terms of Service contain no mention of in-person KYC requirements, raising questions about the legal basis for such demands.

Pattern of Frozen Funds at MEXC Exchange

White Whale is not the first MEXC user to report frozen funds without clear explanations. Another user, Pablo Ruiz, claimed over $2 million in USDT was frozen under a "risk control" protocol without prior notice or explanation.

Ruiz reported receiving automated responses stating his account review would take 365 days, with instructions to contact MEXC again in April 2026. This pattern suggests potential systemic issues with MEXC's fund freezing procedures.

Industry Implications for Crypto Exchange Security

This case highlights broader concerns about cryptocurrency exchange security and user protection. The unusual request for international travel to verify identity sets a concerning precedent that could expose users to physical risks.

Security experts have noted the increasing frequency of crypto-related kidnappings and extortion attempts. Requiring users to travel internationally for fund recovery could create additional vulnerability points for high-value cryptocurrency holders.

MEXC's Previous Responses to Frozen Fund Allegations

MEXC's current response mirrors statements made in March regarding previous "ungrounded allegations" about frozen customer assets. The exchange has consistently maintained its adherence to risk management protocols while facing multiple user complaints about inaccessible funds.

The exchange has not provided detailed explanations for why standard remote verification procedures are insufficient in cases involving large cryptocurrency holdings.

Regulatory Questions Surrounding Exchange Practices

The case raises questions about regulatory oversight of cryptocurrency exchange practices. Traditional financial institutions typically have clear procedures for fund freezing and recovery that don't require international travel for identity verification.

Crypto exchanges operating across multiple jurisdictions face complex compliance requirements, but the Malaysia meeting request appears to exceed standard industry practices for KYC verification.

Conclusion

The MEXC exchange case demonstrates the ongoing challenges facing cryptocurrency users when dealing with centralized exchanges. While exchanges must implement risk management procedures, requests for international travel to verify identity represent an unusual escalation that raises both security and legal concerns.

The outcome of White Whale's campaign and any potential regulatory response could set important precedents for how crypto exchanges handle large frozen fund cases in the future.

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