A prominent crypto trader, known as "The White Whale," has publicly withdrawn his offer to advise the MEXC cryptocurrency exchange, citing a critical "structural rot" within the platform. His decision follows an initial willingness to assist MEXC after successfully recovering $3 million from his own assets on the exchange. Now, however, he warns that the exchange's fundamental flaws place user funds at significant risk.
Unveiling the "Structural Rot" Within MEXC
The White Whale detailed several concerning issues contributing to what he describes as a deeply flawed operational structure. In an extensive X (formerly Twitter) post, he exposed alleged "fake proof of reserves," arbitrary justifications for fund seizures, and a blatant disregard for due process. A critical concern highlighted is MEXC's reported ability to block users from accessing their own transaction records. He asserted that as long as these systemic issues persist, MEXC remains a "rotten apple," inherently jeopardizing its users' assets. His attempts to guide MEXC toward greater transparency regarding their proof of reserves were reportedly dismissed, with the exchange claiming their existing practices were "better than nothing" – a stance The White Whale strongly refuted as amounting to "nothing" at all.
Escalating Concerns Over User Fund Confiscation
Beyond the transparency issues, the crypto advisor raised severe alarms about MEXC's alleged ongoing practice of confiscating user funds. He claims to have personally instructed the exchange to cease such actions and instead report any suspected illegal activities to law enforcement. Despite this, The White Whale asserts that the situation is worsening, with new evidence of confiscation coming to light, which he has personally verified. MEXC reportedly justifies these actions by invoking "Risk Control Guidelines," frequently using vague terms like "suspected" to facilitate permanent fund confiscation without robust justification. Adding another layer of concern, The White Whale revealed that MEXC now purges users' transaction histories after confiscating their funds, significantly impeding their ability to prove innocence or seek recourse, thus making it increasingly difficult for affected individuals to challenge the exchange's decisions.
