White Whale has withdrawn its offer to serve as an unpaid advisor to MEXC, citing continued withholding of user funds and deceptive transparency practices.
summary
- White Whale declined to serve as an advisor to MEXC, citing deceptive transparency practices.
- He said that without an accountability audit, the exchange’s proof of reserves is “meaningless.”
- MEXC seized users’ funds and erased their transaction history, sparking public criticism.
The crypto trader posted a lengthy explanation on X detailing why he no longer believes the exchange is sincere about reform.
The withdrawal comes after The White Whale secretly requested a mutual NDA from MEXC. He rejected the exchange’s “non-minor injury” clause, telling Mexico that “if this is nothing more than smoke and mirrors, we reserve the right to publicly denounce it at any time.”
White Whale calls reserves certification ‘pointless’
The first issue The White Whale raised concerned MEXC’s “reserve proof” system. He explained that publishing wallet addresses showing assets held is meaningless without an independently verified list of debts.
“All user balances are a liability to the exchange, and publishing only assets without an independently verified liability list is 100% pointless. It’s deceptive marketing disguised as transparency,” he wrote.
We are withdrawing our offer to advise MEXC – this is why (something sinister is going on)
After winning the lawsuit against MEXC, thanks to the continued support of the community and the spotlight that contributed to the unwarranted seizure of user funds, I made the following public call:
If so… pic.twitter.com/OynH4g822Q
— Moby Dick (@TheWhiteWhaleV2) November 8, 2025
When he told Mexico about this, their response was: “Well, it’s better than nothing, right?” White Whale replied, “No, actually, by design, nothing.”
The second issue concerns the continued forfeiture of funds. White Whale asked MEXC to stop seizing user funds. “If you suspect illegal activity, turn it over to law enforcement. If not, give the people their money back,” he said.
Exchange erases users’ transaction history after foreclosure
A user contacted The White Whale with evidence of $4,000 in seized funds. MEXC cited risk management guidelines that include language like “suspicion,” meaning funds can be kept indefinitely based on suspicion alone.
After the confiscation, MEXC erased the users’ transaction history. “They stole the users’ money. They admitted it. There were no specific charges. And they erased evidence that could have helped prove the users’ innocence,” Whitewhale wrote.
He feels partially responsible and suggests MEXC learned from his public account history during his $3 million lawsuit. “Their $4,000 means more than the $3 million I’ve ever given,” he said.
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