Cryptocurrency exchange MEXC has publicly apologized to a crypto trader known as "White Whale" after freezing $3 million worth of their assets for several months. The exchange's Chief Strategy Officer, Cecilia Hsueh, admitted that MEXC "f***-ed up" in handling the situation and confirmed that the funds had been released.

The incident began in July when MEXC froze White Whale's $3.1 million, citing "risk control rules". This action prompted White Whale to launch a $2 million social media campaign in August, which was later increased to $2.5 million, to pressure MEXC into releasing the funds. White Whale reported that MEXC had requested him to travel to Malaysia to resolve the issue.

Hsueh publicly apologized on X, stating, "We apologize to [the White Whale], and his money is already released,". She also admitted to mishandling communication with the trader, saying, "I messed up in communicating with him. I got emotional, and I shouldn't have".

While White Whale acknowledged the apology, he pointed out that it lacked specifics regarding what MEXC was apologizing for. He stated that it would have been appropriate for MEXC to address the implications that he was a criminal or scammer, considering the exchange's initial AML (Anti-Money Laundering) claims and subsequent accusations. Despite the reimbursement, White Whale stated that "the work is not yet done,". He plans to pursue other similar cases to recover funds for other users and distribute the entire $3 million to the 20,000 supporters of his social media campaign and to non-profit organizations.

The situation has sparked debate within the crypto community regarding the transparency and accountability of centralized exchanges. One Reddit user noted that most regular users would not have the resources to fight such a freeze, highlighting the power imbalance between exchanges and their users. Many users online praised the decision but continued to criticize the exchange for freezing the funds in the first place.

The resolution of this dispute is viewed as a positive step toward accountability in the crypto industry. MEXC's public apology and reimbursement demonstrate a willingness to take responsibility and address user concerns. Such actions are essential for maintaining user confidence in the cryptocurrency ecosystem.