Crypto trader The White Whale has officially pulled back his offer to serve as an unpaid advisor to the exchange MEXC, saying the platform is still seizing user funds and hiding behind fake transparency.
In a long post on X, he explained exactly why he no longer believes MEXC is serious about reform — calling out what he described as “something sinister brewing.”
💥 Why The White Whale walked away
After winning his own case against MEXC — where the exchange had frozen his funds — The White Whale had offered to help them rebuild trust for free.
But that offer is now off the table.
He says MEXC wanted him to sign a non-disparagement clause, which would have legally stopped him from criticizing them in public.
He refused, saying:
“I will always reserve the right to call you out publicly if this is all just smoke and mirrors.”
Instead, he proposed a mutual NDA (a standard non-disclosure agreement) that would protect both sides, but MEXC reportedly didn’t agree to that.
🧾 Proof of Reserves? “Meaningless,” says White Whale
The first major red flag for him was MEXC’s so-called Proof of Reserves system — a method exchanges use to show how much crypto they hold.
But according to The White Whale, it’s not real transparency.
“Every user balance is a liability to the exchange — and publishing only the assets without an independently verified list of liabilities is 100% meaningless,” he said.
“It’s deceptive marketing pretending to be transparency.”
When he told MEXC this, their response was reportedly, “Well, it’s better than nothing, right?”
To which he replied:
“No. In fact, it is nothing — by design.”
In other words, showing wallet balances without revealing what the exchange actually owes users tells you nothing about whether it’s solvent.
🚨 Fund seizures continue
The second major issue? MEXC is still taking user funds, according to multiple reports shared with The White Whale.
He said users have come forward showing that their crypto was confiscated under vague “Risk Control Guidelines.” These rules include phrases like “suspected illegal activity,” which lets MEXC keep funds permanently — based on suspicion alone.
One user claimed to have lost $4,000, and after seizing the money, MEXC allegedly erased the user’s transaction history.
The White Whale wrote:
“They stole the user’s money. They admitted to it. They offered no specific accusation. And they erased the evidence that could have helped prove the user’s innocence.”
He said this behavior mirrors what happened during his own $3 million dispute with the exchange.
“Their $4,000 means more to them than my $3 million ever did,” he added.
⚠️ A pattern of “deceptive transparency”
The White Whale says what worries him most is the pattern — not just isolated mistakes, but a consistent effort to look transparent while doing the opposite.
He believes MEXC’s Proof of Reserves, combined with continued fund seizures and data wiping, points to a deeper problem in how the exchange handles both user trust and accountability.
His final statement summed it up:
“If you suspect illegal activity, turn it over to law enforcement. Otherwise, give people their money back.”
🧩 The bigger picture
This incident is the latest in a growing list of crypto exchange controversies in 2025. With several platforms under fire for misusing customer funds and faking transparency, traders are becoming more cautious about where they store their assets.
The White Whale’s decision to walk away — and his public explanation — is another reminder of why users are increasingly demanding real audits, real accountability, and real control over their own crypto.
Or as many in the crypto world put it:
“Don’t trust, verify.”
