White Whale-MEXC Dispute Resurfaces, Involving $3 Million Fund Freeze
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Dispute Resurgence: In January 2026, White Whale accused MEXC of listing its perpetual futures before official market-making support was active, reigniting concerns over centralized exchanges' operational transparency, which could undermine investor confidence.
- Historical Context: Back in August 2025, White Whale alleged that MEXC froze over $3 million in funds due to a demand for in-person KYC checks in Malaysia, which was not clearly stated in the user terms, leading to a crisis of trust among users.
- Compliance Issues: Although MEXC initially denied the allegations, claiming the account was flagged by internal risk systems, it later accepted blame, highlighting the significant control centralized exchanges have over user funds, sparking widespread debate.
- Market Reaction: Following White Whale's derivatives listing on Bybit, trading interest surged, and the new allegations against MEXC may intensify scrutiny over its market operations, potentially affecting its future user base and market reputation.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
