A crypto whale who has $3.1 million in funds frozen on crypto exchange MEXC claims he was told to fly to Malaysia to prove his identity in person to have his funds released quickly.
According to screenshots shared by the pseudonymous crypto trader “White Whale,” MEXC’s global head of customer service offered him an “exclusive invitation” to Malaysia to have an “in-depth communication with the leadership team” about the frozen assets.
Source: The White Whale
The reported move would be outside the norm for crypto exchanges. Know Your Customer solutions typically involve proof of address, verification of source of funds, identification, and other documents that can be sent online.
Screenshots of emails and Telegram chats shared by the trader also suggest that MEXC tried to lure them with a potential partnership and “trading perks,” but the crypto trader rejected the offer, criticizing MEXC for using coercive tactics while flagging safety concerns about flying to a foreign country under the circumstances.
“Crypto kidnappings are on the rise – why would someone with over $100M on-chain ever agree to fly to another country and enter the lion’s den of an organization he’s publicly protesting against?”
MEXC says it doesn’t freeze assets without reason
A MEXC spokesperson told Cointelegraph that it “strictly adheres to risk management policies and does not freeze assets without valid reasons.”
MEXC said it may take measures in response to price manipulation, wash trading, self-trading, front-running, fraudulent trading and false quoting.
The spokesperson did not address the trader’s claims of being offered to fly to Malaysia to resolve the situation.
Crypto trader has been pressuring MEXC to release funds
The crypto whale added he has completed all other KYC checks, including face verification, phone number, and home address, and noted that MEXC’s Terms of Service makes no mention of in-person KYC.
Earlier on Monday, White Whale launched a $2 million social media pressure campaign…
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