Major

White Whale

Million

Ethena

James

<p>MEXC, one of the largest global crypto exchanges, is facing mounting user backlash and significant withdrawals after a wave of accusations about withheld funds and poor internal practices circulated on X.</p>
<p>On-chain data from CryptoQuant shows a sharp spike in Bitcoin withdrawals from MEXC beginning in mid-2025, coinciding with the latest controversy surrounding the exchange.&nbsp;</p>
<p>Outbound transactions spiked after months of calm, indicating users are withdrawing funds amid rising concerns over transparency and management.</p>
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  <img width="1200" height="675" src="https://www.cryptotimes.io/wp-content/uploads/2025/11/image-1200x675.png" alt="Exchange Withdrawing Transactions - MEXC">
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   Source: <a href="https://cryptoquant.com/asset/btc/chart/exchange-flows/exchange-withdrawing-transactions?exchange=all_exchange&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line" target="_blank" rel="noopener noreferrer nofollow">CryptoQuant</a>
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<p>The controversy erupted after trader The WhiteWhale publicly <a href="https://www.cryptotimes.io/2025/08/28/crypto-trader-boosts-mexc-bounty-to-2-5m-over-kyc-demand/" target="_blank" rel="noopener noreferrer nofollow">accused</a> MEXC of freezing his assets, prompting independent investigator Zachxbt to begin reviewing user claims.&nbsp;</p>
<p>Crypto commentator on X, James Rucker (JT) amplified the discussion, calling MEXC a “mafia exchange” and urging others with information, including about an alleged insider known as “Tony”, to contact ZachXBT.</p>
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p>Scam exchanges <a href="https://twitter.com/MexC?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@mexc</a> is on <a href="https://twitter.com/zachxbt?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@zachxbt</a> radar.<br><br>After <a href="https://twitter.com/TheWhiteWhaleV2?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@TheWhiteWhaleV2</a> got vocal about the mafia exchange everyone is coming out with how they have been scammed by MEXC.<br><br>If anyone got any info about the so called Tony contact Zach.<a href="https://twitter.com/coffeebreak_YT?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@coffeebreak_YT</a> should take a look into it too. <a href="https://t.co/zxjs6rIkAh" rel="noopener noreferrer nofollow">pic.twitter.com/zxjs6rIkAh</a></p>— JT (@JamesRucker21) <a href="https://twitter.com/JamesRucker21/status/1984230238218514701?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 31, 2025</a>
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<p>In a rare public admission, Cecilia Hsueh, MEXC’s Chief Strategy Officer, posted: “We fuc*ed up.” She apologized to The White Whale, confirming that his funds had been released and admitting to communication failures.&nbsp;</p>
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
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  <blockquote class="twitter-tweet">
   <p>We fucked up.<br><br>We apologize to <a href="https://twitter.com/TheWhiteWhaleV2?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@TheWhiteWhaleV2</a> , and his money is already released. He can claim it at any time.<br><br>I messed up in communicating with him. I got emotional, and I shouldn’t have.&nbsp;<br><br>Since I joined MEXC 2 months ago I’ve been fighting behind the scenes to get MEXC to…</p>— Cecilia Hsueh (@cecilia_hsueh) <a href="https://twitter.com/cecilia_hsueh/status/1984291339257647176?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 31, 2025</a>
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<p>Her statement drew sharp reactions from industry figures, with one of JZ’s deleted comment claiming that “MEXC is insolvent,” reflecting broader skepticism about the exchange’s promises.</p>
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  <img loading="lazy" width="634" height="675" src="https://www.cryptotimes.io/wp-content/uploads/2025/11/JZs-Tweet.webp" alt="JZ’s Tweet on X" style="width: 100%;height:auto">
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   Source: X
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<h2 class="wp-block-heading" id="public-accusation-in-recent-past">Public accusation in recent past</h2>
<p>The current wave of withdrawals appears to be the culmination of tensions that began weeks earlier when trader White Whale accused MEXC of <a href="https://www.cryptotimes.io/2025/08/25/3m-frozen-by-mexc-trader-strikes-back-with-2m-campaign/" target="_blank" rel="noopener noreferrer nofollow">freezing over $3 million in funds</a>.&nbsp;</p>
<p>In September, he launched a $2 million social media campaign against the exchange, claiming his account was locked for being “too profitable.”&nbsp;</p>
<p>The campaign, featuring a bounty for users minting NFTs and tagging MEXC with the hashtag #FreeTheWhiteWhale, quickly gained traction, fueling public distrust and drawing attention from prominent crypto figures and investigators.</p>
<p>MEXC’s silence beyond Cecilia’s post and its opaque dispute history cast doubt on promised reforms, a sharp reminder that accountability still defines centralized exchanges.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>Also read: <a href="https://www.cryptotimes.io/2025/10/01/mexc-ventures-raises-its-investment-in-ethena-to-66-million/" target="_blank" rel="noopener noreferrer nofollow">MEXC Ventures Raises its Investment in Ethena to $66 Million</a></p>
</blockquote>

MEXC Sees Major Withdrawals After Public Accusations

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The Crypto Times

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