MEXC publishes 129% BTC reserve ratio, confirming normal operational status

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MEXC publishes 129% BTC reserve ratio

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Artem Shendetskii

03.11.2025

MEXC publishes 129% BTC reserve ratio, confirming normal operational status — MEXC denies bankruptcy rumors

The dispute at the center of the MEXC saga has been resolved: the exchange apologized to the trader known as “White Whale” and released roughly $3 million in frozen funds, easing immediate concerns.

Core platform functions, including deposits and withdrawals, continue to operate; earlier disruptions this year were tied to a brief third-party cloud outage rather than liquidity stress. As a result, talk of imminent insolvency has not been supported by verifiable evidence.

Claims that crypto exchange MEXC is nearing bankruptcy resurfaced after a high-profile dispute with a pseudonymous trader known as “White Whale,” whose $3.1 million in funds were frozen earlier this year.

Coverage in English-language crypto media amplified the controversy as the trader alleged the exchange asked for an in-person KYC check in Malaysia to expedite a resolution. The episode sparked broader speculation on social platforms about MEXC’s financial health, even as no formal bankruptcy filing or court process has been announced as of November 3, 2025. MEXC, for its part, has said it restricts accounts under risk-control procedures and has warned users not to spread unverified accusations.

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The Dutch market regulator also drew attention to the platform in September with a consumer warning unrelated to insolvency, adding regulatory heat to an already sensitive situation. Together, these developments fueled fresh online chatter that blurred the line between a customer-service dispute and claims of systemic distress.

What the data and disclosures show

Beyond the noise, there are concrete signals worth weighing. In late August, MEXC published an update touting “bi-monthly” proof-of-reserves figures, including a stated 129.85% Bitcoin reserve ratio and multi-billion-dollar stablecoin balances—figures that, if accurate, imply over-collateralization rather than a shortfall. On-chain dashboards also track exchange holdings; DefiLlama’s CEX transparency page shows MEXC with several billion dollars in assets, though methodologies and real-time precision can vary.

Importantly, recent reporting indicates the exchange apologized to the trader at the center of the controversy and said the disputed funds had been unfrozen—an outcome inconsistent with an imminent bankruptcy scenario. At the same time, regulators are scrutinizing the platform’s licensing status in parts of Europe: in September the Netherlands’ AFM publicly warned consumers that MEXC lacks the required local authorization. Company statements maintain that freezes stem from “abnormal trading” reviews rather than profit-related retaliation, and the firm urges users to verify claims before amplifying them. Taken together, the available evidence points to reputational and compliance pressures rather than a confirmed solvency crisis.

What to watch and how to frame the risk

Proof-of-reserves can help assess asset backing, but they are not financial audits and do not reveal off-exchange liabilities—regulators and audit watchdogs have warned investors not to treat PoR as a solvency guarantee. For users, the practical due-diligence checklist remains the same: monitor independent dashboards for material changes in exchange balances, watch for credible regulatory actions, and diversify custody to limit counterparty exposure.

If MEXC continues publishing reserve attestations and third-party trackers reflect stable or rising balances, that will weigh against the bankruptcy narrative; sharp, unexplained asset declines or fresh enforcement actions would argue the opposite. Given the AFM’s licensing warning, European users should pay close attention to local compliance updates, as access restrictions can create operational, though not necessarily solvency, risk. As for the White Whale case, the reported unfreezing and apology reduces immediate tail risk from that dispute, but future handling of similar cases will be a signal of governance maturity.

Recently we wrote that users of MEXC Official have reported that withdrawals amounting to $40 million have been frozen amid questionable USDT staking yields of 600%.

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