Crypto trader the White Whale, who had offered to serve as an advisor to crypto exchange MEXC, has retracted his offer. This came as he highlighted a ‘structural rot’ within the exchange, which puts customers at risk of losing their coins. Crypto Advisor Exposes ‘Structural Rot’ Within MEXC In an X post, the White Whale described the fake proof of reserves, arbitrary justifications for seizures, the lack of due process, and the ability to block users from their own records as the structural rot within the crypto exchange. He further remarked that MEXC remains a “rotten apple” as long as this structural rot exists. Related Reading: Bitcoin And Crypto Market Set To Bounce As Rate Cut Probabilities Touch 98.3% The White Whale revealed that he has withdrawn his offer to advise MEXC, claiming that something “sinister” is brewing. The crypto trader initially offered to advise the crypto exchange for free after he recovered his $3 million from it. However, he is no longer offering his services as he believes everything within the exchange is all “smoke and mirrors.” The crypto trader explained that he had raised concerns about MEXC’s proof of reserves after offering to serve as an advisor to the crypto exchange. He mentioned to the exchange that publishing wallet addresses alone wasn’t sufficient as proof of reserves, and that they had to do more to ensure transparency with users’ funds. The White Whale indicated that MEXC shrugged off this advice, suggesting that what they were doing was better than nothing. However, the crypto trader described the proof of reserves as ‘nothing.’ He added that the exchange continues to push the fake proof-of-reserves narrative, which reminds him of the saying, “If you have to tell people you’re a lady, you aren’t.” On Confiscating Users’ Funds The White Whale mentioned that he told MEXC to stop confiscating users’ funds and that if they suspect illegal activity, they should report it to law enforcement. However, he claimed the exchange is still confiscating users’ funds and that it is getting worse. The crypto trader revealed that a particular user reached out to him with evidence, which he verified. Related Reading: Bitcoin Price Could See A New All-Time High Above $126,000 If It Breaks This Critical Level MEXC allegedly cited its Risk Control Guidelines as the reason for confiscating these funds. The White Whale stated that the crypto exchange still used terms like “suspected,” meaning it can permanently confiscate funds based on mere suspicion. He further claimed that the exchange could easily prevent the major items on the list through code, but doing so would remove their excuse to seize user funds. Meanwhile, the White Whale noted that MEXC now wipes users’ transaction history after confiscating their funds. He stated that this happened after he made his account history public to prove his innocence, following the confiscation of $3 million from his account. This move by the crypto exchange now makes it harder for users to prove their innocence. Featured image from Pxfuel, chart from Tradingview.com
