Crypto exchange MEXC is accused of illegally freezing users’ cryptocurrency and blackmail

Key points:

• A crypto trader under the nickname White Whale reported that MEXC froze $3,1 million in his account.
• The exchange strongly recommended that he fly to Malaysia to undergo the KYC procedure in person, even though he had already passed online verification.
• Other users also reported similar freezes.

An investor under the nickname White Whale accused the centralized crypto exchange (CEX) MEXC of illegally freezing his funds of $3,1 million in July 2025. He claims that the platform is pressuring him under the guise of a standard “Know Your Customer” (KYC) user identification procedure. Despite fully complying with all identity verification requirements, access to his assets remains blocked.

After communicating with White Whale’s support staff, he requested to speak with the exchange’s management team, but only the head of support responded. During the conversation, the trader was asked to come to Malaysia in person to complete the KYC procedure.

White Whale stated that he had already provided all the necessary documents for verification, and that the client’s personal presence is not specified as mandatory in the MEXC rules. Against the backdrop of frequent kidnappings of cryptocurrency owners, the trader considered such a trip unsafe. When he refused, the customer support representative emphasized that only a visit to Malaysia could speed up the account unlocking process. The investor saw this as a hidden requirement: to get his funds back, he would have to travel abroad. The White Whale described this behavior as blatant pressure on users.

Other traders reported similar problems

The situation has heightened ongoing concerns about CEXs and their control over customer assets. Although MEXC has not made any public comments, other traders have reported similar experiences.

For example, user Pablo Ruiz said that his account, worth more than $2 million in USDT, was frozen in April as part of the platform’s so-called “risk control” system. According to him, MEXC notified him that the account would remain frozen for 365 days and that he would only be able to access his account in April 2026.

According to White Whale, such behavior by a crypto exchange is unacceptable and reminiscent of scenes from crime movies. He emphasized that if the trading platform allows itself to treat a client whose crypto portfolio is valued at millions of dollars in this way, any other user could face a similar problem.