A prominent cryptocurrency trader, known by the pseudonym "White Whale," has escalated his campaign against the MEXC exchange by increasing the bounty to $2.5 million. This move follows allegations that MEXC demanded an in-person Know Your Customer (KYC) verification in Malaysia to unfreeze the trader's $3 million worth of personal funds .

Background

In July 2025, MEXC reportedly froze $3.1 million of the White Whale's personal funds without providing clear terms of service violations. The trader claims that the exchange requested a one-year review period before considering the unfreezing of the funds. Subsequently, the White Whale launched a $2 million social media pressure campaign, which included minting a free non-fungible token (NFT) on the Base network and tagging MEXC or its chief operating officer's X account with the "#FreeTheWhiteWhale" hashtag. The campaign gained significant attention, prompting the trader to increase the bounty to $2.5 million, allocating an additional $250,000 for users who participate in the social media campaign .

MEXC's KYC Procedures

MEXC has implemented Know Your Customer (KYC) procedures to ensure compliance with global financial regulations and to enhance user trust. The exchange offers two levels of KYC verification: Primary and Advanced. Primary KYC involves submitting basic personal information and uploading photos of identification documents, such as an ID card, passport, or driver's license. Advanced KYC requires additional steps, including facial recognition to match the submitted ID photo .

While these procedures are standard in the industry to prevent fraud and comply with legal requirements, the White Whale's case highlights potential challenges and frustrations users may face when dealing with such verification processes.

Implications and Industry Impact

The White Whale's campaign has brought attention to the practices of centralized cryptocurrency exchanges like MEXC. By leveraging social media and offering substantial financial incentives, the trader has mobilized a community of users to demand accountability and transparency from the exchange. This incident underscores the growing influence of individual traders and the power of collective action in the digital age.

Furthermore, the case raises questions about the balance between regulatory compliance and user experience. While KYC procedures are essential for preventing financial crimes, exchanges must also consider the impact of their policies on users, especially those who may face difficulties with in-person verification requirements.

The escalation of the White Whale's campaign against MEXC serves as a reminder of the complexities and challenges associated with KYC procedures in the cryptocurrency industry. As the situation develops, it will be interesting to observe how MEXC responds and whether this incident prompts broader discussions and potential reforms regarding KYC practices across the industry.