The White Whale has withdrawn his offer to serve as an unpaid advisor to MEXC and cited continued user fund seizures and deceptive transparency practices.
Summary
- White Whale declined MEXC advisory role, citing deceptive transparency practices.
- He called the exchange’s Proof of Reserves “meaningless” without liability audits.
- MEXC seized user funds and erased 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 requested a mutual NDA from MEXC behind the scenes. He rejected the exchange’s “non-disparagement” clause, telling MEXC he would “always reserve the right to call you out publicly if this is all just smoke and mirrors.”
White Whale calls Proof of Reserves “meaningless”
The first issue The White Whale raised concerned MEXC’s “Proof of Reserves” system. He explained that publishing wallet addresses showing assets held means nothing without an independently verified list of liabilities.
“Every user balance is a liability to the exchange – and publishing only the assets without an independently verified list of liabilities is 100% meaningless. It’s deceptive marketing pretending to be transparency,” he wrote.
When he told MEXC this, their response was: “Well, it’s better than nothing, right?” The White Whale replied: “No. In fact it is nothing, by design.”
The second issue involves continued fund confiscation. The White Whale urged MEXC to stop seizing user funds. “If you suspect illegal activity, turn it over to law enforcement. Otherwise, give people their money back,” he stated.
Exchange wipes user transaction history after seizure
A user reached out to The White Whale with evidence of a $4,000 fund seizure. MEXC cited Risk Control Guidelines that include language like “suspected,” meaning they can permanently keep funds based on suspicion alone.
After the confiscation, MEXC wiped the user’s transaction history. “They stole the user’s money. They admitted to it. They offered no specific accusation. And they erased the evidence that could have helped proven the user’s innocence,” The White Whale wrote.
He feels partly responsible, suggesting MEXC learned from his public account history during his $3 million case. “Their $4,000 means more to them than my $3 million ever did,” he noted.
