Confidence in the MEXC cryptocurrency exchange is wavering as indicated millions of dollars in withdrawals by users. Although the platform recently released about $3 million to trader The White Whale after a controversial freeze that extended from July 2025, the deep uncertainty in the crypto community, which questions the security of its assets, has not been mitigated.
The release of the trader’s cryptocurrency funds, after months of being blocked due to «suspicious activity», set off an alarm in the community that revolves around digital assets. Far from calming spirits, this event unleashed a wave of mistrust that triggered withdrawals of $45 million from MEXC in just 24 hours.
MEXC’s situation worsened after learning that, allegedly, a hundred cases of frozen user funds persistgenerating palpable alarm in the community.
In fact, The White Whale states this by confirming the release of its funds, an outcome that it attributes to «public outrage.» And, while he appreciates the exchange’s apology, he regrets that there was no specific reason for the block, nor an apology for any suggestions of criminal activity or scam.
In any case, the community’s complaints generated a statement by Cecilia Hsueh, CSO or security director of MEXC with two months in office, who stated on October 31, 2025: “our finances are solid; the problem in question is operational. And we will solve it. It previously announced 24-hour hotfixes and bug bonuses. Despite all this, the exchange suffered massive withdrawals.
Shortly after, the situation escalated when user maxleebtc accused MEXC of freezing more than $3 million in cryptocurrencies for 20 days.
Hsueh responded to maxleebtc, asking for a user ID and calling him a farming de engagementthat is, creating controversial or provocative content with the main objective of generating many interactions.
However, not everyone is criticizing MEXC; James Wynn defended the exchange and its team: “I moved 7 figures without problems. Hatred of cecilia_hsueh is farming,» he said.
Amid the growing FUD (fear, uncertainty and doubt) surrounding MEXC, some users are trying to counter the panic with personal experiences. One trader, for example, reported successfully withdrawing $25 million in cryptocurrency from the platform in the last two weeks, claiming to have encountered no problems.
After all this incident shows how Community trust is vital for cryptocurrency exchanges. The fear of withdrawals can generate panic, affecting your liquidity. Recent history remembers that there were also MEXC blockades in December 2023.
Beyond that, and despite the personal victory, the trader The White Whale emphasizes that the fight for greater transparency and fairness on exchanges is far from over. After learning of hundreds of similar cases of freezing funds without the same visibility, he proposes two key points for MEXC: first, eliminate the financial incentive to confiscate client funds, delegating suspicions of criminal behavior to the authorities. Second, improve and accelerate risk control review processes, establishing reasonable deadlines for referring cases or releasing funds, since the risk team should not act as a legal authority.