White Whale has withdrawn its provide to function an unpaid advisor to MEXC, citing continued withholding of consumer funds and misleading transparency practices.
abstract
- White Whale declined to function an advisor to MEXC, citing misleading transparency practices.
- He mentioned that with out an accountability audit, the alternate’s proof of reserves is “meaningless.”
- MEXC seized customers’ funds and erased their transaction historical past, sparking public criticism.
The crypto dealer posted a prolonged clarification on X detailing why he believes the alternate isn’t honest about reform.
The withdrawal comes after The White Whale secretly requested a mutual NDA from MEXC. He rejected the alternate’s “non-minor harm” clause, telling Mexico that “if that is nothing greater than smoke and mirrors, we reserve the appropriate to publicly denounce it at any time.”
White Whale calls reserves certification ‘pointless’
The primary difficulty The White Whale raised involved MEXC’s “reserve proof” system. He defined that publishing pockets addresses displaying belongings held is meaningless with out an independently verified checklist of money owed.
“All consumer balances are a legal responsibility to the alternate, and publishing solely belongings with out an independently verified legal responsibility checklist is 100% pointless. It is misleading advertising and marketing disguised as transparency,” he wrote.
We’re withdrawing our provide to advise MEXC – this is the reason (one thing sinister is occurring)
After profitable the lawsuit towards MEXC, due to the continued assist of the neighborhood and the highlight that contributed to the unwarranted seizure of consumer funds, I made the next public name:
If that’s the case… pic.twitter.com/OynH4g822Q
— Moby Dick (@TheWhiteWhaleV2) November 8, 2025
When he instructed Mexico about this, their response was: “Properly, it is higher than nothing, proper?” White Whale replied, “No, really, by design, nothing.”
The second difficulty issues the continued forfeiture of funds. White Whale requested MEXC to cease seizing consumer funds. “If you happen to suspect criminal activity, flip it over to legislation enforcement. If not, give the folks their a refund,” he mentioned.
Trade erases customers’ transaction historical past after foreclosures
A consumer contacted The White Whale with proof of $4,000 in seized funds. MEXC cited danger administration tips that embrace language like “suspect”, which implies funds could be saved endlessly primarily based on suspicion alone.
After the confiscation, MEXC erased the customers’ transaction historical past. “They stole the customers’ cash. They admitted it. There have been no particular costs. They usually erased proof that might have helped show the customers’ innocence,” Whitewhale wrote.
He feels partially accountable and suggests MEXC discovered from his public account historical past throughout his $3 million lawsuit. “Their $4,000 means greater than the $3 million I’ve ever given,” he mentioned.
