MEXC, a prominent global cryptocurrency exchange, is experiencing significant user backlash and a surge in fund withdrawals. This comes after a series of accusations regarding withheld assets and questionable internal practices have circulated widely on X.
On-chain data from CryptoQuant indicates a substantial increase in Bitcoin withdrawals from MEXC, beginning in mid-2025. This spike in activity directly correlates with the most recent controversy surrounding the exchange.
Following a period of relative calm, outbound transactions have sharply escalated. This trend suggests that users are actively moving their funds out of MEXC due to growing concerns about the platform's transparency and management practices.
Escalation of Controversy
The current controversy gained momentum after a trader, known as The WhiteWhale, publicly accused MEXC of freezing his assets. This accusation prompted independent investigator zZachxbt to initiate a review of user claims against the exchange.
Crypto commentator James Rucker, operating under the handle JT on X, further amplified the discussion. Rucker characterized MEXC as a "mafia exchange" and encouraged individuals with relevant information, including details about an alleged insider referred to as "Tony," to contact ZachXBT.
Scam exchanges @mexc is on @zachxbt radar.
— JT (@JamesRucker21) October 31, 2025
After @TheWhiteWhaleV2 got vocal about the mafia exchange everyone is coming out with how they have been scammed by MEXC.
If anyone got any info about the so called Tony contact Zach.@coffeebreak_YT should take a look into it too. pic.twitter.com/zxjs6rIkAh
In a notable public statement, Cecilia Hsueh, MEXC's Chief Strategy Officer, acknowledged the issues by stating, "We fuc*ed up." She extended an apology to The WhiteWhale, confirming that his funds had been released and admitting to communication failures on the exchange's part.
We fucked up.
— Cecilia Hsueh (@cecilia_hsueh) October 31, 2025
We apologize to @TheWhiteWhaleV2 , and his money is already released. He can claim it at any time.
I messed up in communicating with him. I got emotional, and I shouldn’t have.
Since I joined MEXC 2 months ago I’ve been fighting behind the scenes to get MEXC to…
Hsueh's admission generated strong reactions from various industry figures. One deleted comment attributed to JZ suggested that "MEXC is insolvent," reflecting a broader skepticism regarding the exchange's assurances.
Background of Accusations
The current surge in user withdrawals appears to be the culmination of tensions that began several weeks prior. Trader White Whale had accused MEXC of freezing over $3 million in his funds.
In September, White Whale initiated a $2 million social media campaign targeting the exchange, alleging that his account was locked due to being "too profitable."
This campaign, which included incentives for users to mint NFTs and tag MEXC with the hashtag #FreeTheWhiteWhale, rapidly gained public attention. It fueled widespread distrust and drew the scrutiny of prominent cryptocurrency figures and investigators.
MEXC's continued silence, apart from Cecilia's public statement, and its history of opaque dispute resolution processes, cast doubt on its promises of reform. This situation serves as a stark reminder of the ongoing importance of accountability in centralized exchanges.