Seychelles-based cryptocurrency exchange MEXC found itself in the middle of a controversy on Friday when users of social media site X (formerly Twitter) called for immediate withdrawals amid speculation about the exchange’s possible bankruptcy.
What happened at MEXC?
Market analyst JA Maartun was one of the first to draw attention to the situation, exchange a graph on social media indicating a significant increase in withdrawal transactions around midday.
Investigator Hanzo also shed light on the unfolding drama, revealing the plight of a user known as “The White Whale.” this individual reclaimed that his account was suspended despite trading without the use of bots or APIs, preventing him from accessing his funds, which he estimated to be between $3 million and $5 million.
The White Whale alleged that customer service was unresponsive and that when he contacted Cecilia Hsueh, MEXC’s new chief strategy officer, he was pressured to admit to breaking the rules to release his funds, a claim he steadfastly denied.
Cecilia later responded that their conversation should have remained private and accused La Ballena Blanca of misrepresenting the facts. MEXC subsequently announced its intention to take legal action against him for alleged disinformation.
However, as the situation escalated, a wave of support emerged from the cryptocurrency community, including notable figures like ZachXBT, as many users reported similar issues with MEXC.
This collective response sparked warnings on social media urging users to withdraw their funds immediately, fueling growing unrest.
CSOs apologize
In a quick development, Cecilia issued an apology and confirmed that La Ballena Blanca’s withdrawal had been processed. She fixed:
We screwed up. We apologize to @TheWhiteWhaleV2 and his money has now been released. You can claim it at any time. I was wrong to contact him. I got emotional and I shouldn’t have. Since I joined MEXC 2 months ago I have been fighting behind the scenes to get MEXC to change. We grew very fast; A few years ago, we were a very small exchange, but given our current scale, our risk, operations, and PR teams have not kept pace.
He noted that MEXC has experienced rapid growth, but its operational and public relations teams had struggled to keep pace. “We’re going to change that,” he said, emphasizing that leadership has begun to recognize the need to improve transparency and operations.
In response to bankruptcy rumors, MEXC took to social media to clarify its financial situation. the exchange fixed“Recent online discussions have circulated unverified rumors about the financial status of MEXC. We would like to clearly state that these claims are false and misleading.” They assured users that MEXC remains financially healthy and that all users’ assets are fully backed.
Featured image of DALL-E, chart from TradingView.com
