A crypto whale with $3.1 million frozen on the exchange MEXC says he was told to travel to Malaysia to verify his identity in person if he wanted quicker access to his funds.
Screenshots shared by the pseudonymous trader “White Whale” show MEXC’s global head of customer service offering him an “exclusive invitation” to meet the leadership team in Malaysia for direct talks about the frozen assets.
Such a request is unusual. Normally, crypto exchanges handle Know Your Customer (KYC) checks through digital submissions, such as proof of identity, proof of address, and source of funds documents, rather than requiring in-person travel.
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Screenshots of emails and Telegram messages shared by the trader indicate that MEXC also attempted to entice him with the promise of a potential partnership and special “trading perks.” However, the trader declined, accusing the exchange of using coercive tactics. He also raised safety concerns about being asked to travel to a foreign country under such conditions.
MEXC Defends Its Risk Management Policies
A MEXC spokesperson told Cointelegraph that it “strictly adheres to risk management policies and does not freeze assets without valid reasons.”
MEXC said it may take measures in response to price manipulation, wash trading, self-trading, front-running, fraudulent trading and false quoting.
The spokesperson did not address the trader’s claims of being offered to fly to Malaysia to resolve the situation.
The trader emphasized that he had already passed all standard KYC procedures — including face verification, phone number confirmation, and proof of home address. He also pointed out that MEXC’s Terms of Service contain no reference to any requirement for in-person identity verification.
Earlier on Monday, White Whale announced a $2 million social media campaign aimed at pressuring MEXC to release the frozen funds.
