US cuts crypto exchange MEXC from financial system over alleged $16 billion in illicit flows
The US Treasury's Financial Crimes Enforcement Network has ordered American financial institutions to halt transfers with MEXC Global, alleging the platform facilitated over $16 billion in transactions tied to sanctions evasion and cybercrime.
The US Treasury's Financial Crimes Enforcement Network (FinCEN) has ordered American financial institutions to stop processing funds transfers to or from cryptocurrency exchange MEXC Global. The enforcement measure, rolled out as part of Operation Economic Outcast, comes after regulators determined the exchange facilitated at least $16 billion in illicit transactions between May 2021 and May 2026, primarily tied to sanctions evasion involving Iran, North Korea, and Russia.[2][6][4][7]
According to FinCEN findings, MEXC suffered from severe deficiencies in its anti-money laundering controls that allowed sanctioned entities to move money freely. The illicit volume included nearly $1.5 billion tied to Russian sanctions evasion, approximately $1 billion in direct transactions with Iranian crypto exchanges, and $22 million linked to Iran's central bank and the Islamic Revolutionary Guard Corps. Treasury Secretary Scott Bessent warned that financial institutions "cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system."[4][7][8][5]
The restrictions take effect 30 days after the order's publication in the Federal Register, granting covered institutions limited discretion regarding unsolicited cryptocurrency receipts. Following the announcement, MEXC experienced $126 million in outflows, according to CryptoSlate, while the exchange told users that operations remain normal and customer assets are secure.[1][4][5]
Key facts
- FinCEN ordered US financial institutions to stop processing transfers involving MEXC Global as part of Operation Economic Outcast.
- Treasury alleged MEXC processed at least $16 billion in illicit transactions linked to sanctions evasion by Iran, North Korea, and Russia between May 2021 and May 2026.
- FinCEN found nearly $1.5 billion was tied to Russian sanctions evasion and about $1 billion involved direct dealings with Iranian crypto exchanges.
- The FinCEN order goes into effect 30 days after publication in the Federal Register.
- CryptoSlate reported $126 million in outflows from MEXC following the Treasury action, though the platform stated operations remain normal and user funds are secure.
Sources · 8 sources
- CR
CryptoSlateArticle ·
MEXC sees $126 million outflows as US targets exchange over $16.7 billion in suspected illicit transactions FinCEN’s order starts 30 days after Federal Register publication and gives covered institutions limited discretion over unsolicited crypto receipts. Read the full story on CryptoSlate Understand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Open source - CT
Coin TelegraphArticle ·
US Treasury cuts off MEXC over alleged $16B in illicit transactions The US Treasury bureau FinCEN on Friday ordered US financial institutions to stop processing transfers involving MEXC Global.
Open source - CB
Crypto Briefing@Crypto_BriefingPost on X ·
🚨 NEW: The US Treasury moves to cut crypto exchange MEXC off from the US financial system after linking at least $16B in transactions to illicit activity. FinCEN says the exchange facilitated transactions tied to Iranian, Russian and North Korean sanctions evasion, cybercrime and other illicit activity.
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
US Treasury Moves to Cut MEXC Global Off From US Financial System Over $16B in Illicit Transactions The US Treasury's Financial Crimes Enforcement Network (FinCEN) has issued an order prohibiting US financial institutions from processing funds transfers to or from crypto exchange MEXC Global. FinCEN said MEXC facilitated at least $16 billion in transactions linked to sanctions evasion, cybercrime, and other illicit activities between May 2021 and May 2026, including nearly $1.5 billion tied to Russian sanctions evasion and approximately $1 billion in direct transactions with Iranian crypto exchanges. FinCEN cited severe deficiencies in MEXC's anti-money laundering controls. The order will take effect 30 days after publication in the Federal Register.
Open source - CP
Crypto Patel@CryptoPatelPost on X ·
US TREASURY TARGETS MEXC OVER $16 BILLION IN ALLEGED ILLICIT TRANSACTIONS! FinCEN alleges MEXC processed $16B+ in illicit transactions, including: 🇷🇺 $1.5B linked to Russian sanctions evasion. 🇮🇷 $1B+ involving Iranian crypto exchanges. ▶️ $22M linked to Iran's Central Bank & IRGC. The U.S. has ordered covered financial institutions to restrict certain transfers to and from MEXC. MEXC says it's operating normally and user assets remain secure. This is NOT a global shutdown. @MEXC
Open source - DE
DecryptArticle ·
Treasury Cuts Crypto Exchange MEXC Off From US Financial System FinCEN’s order, part of Operation Economic Outcast, bars U.S. institutions from any transfers to or from MEXC, which Treasury says facilitated $16 billion in illicit finance tied to Iran, North Korea and Russia.
Open source - CB
Coin Bureau@coinbureauPost on X ·
🇺🇸 BREAKING: US Treasury orders crypto exchange MEXC banned from the US financial system over $16 BILLION in illicit funds. Treasury says MEXC handled at least $16 BILLION tied to Iranian, North Korean and Russian sanctions evasion and cybercrime from May 2021 to May 2026. Once the order takes effect, US financial institutions can’t move any funds to or from MEXC. 🇷🇺 Russia: nearly $1.5 BILLION linked to sanctions evasion 🇮🇷 Iran: about $1 BILLION with more than 40 Iranian crypto exchanges 🇰🇵 North Korea: Treasury calls MEXC a hub for its sanctions evasion It also moved about $22 MILLION for Iran’s central bank, the Revolutionary Guard and its Qods Force. MEXC’s own rules ban users in Iran and North Korea, but Treasury says weak anti-money laundering controls let them through. It was still trading with sanctioned Russian exchange Garantex as recently as June 2026, more than 4 years after the US blacklisted it. “Either you support the Iranian regime, or you have access to the U.S. financial system,” Treasury Secretary Scott Bessent said.
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: The Treasury's Financial Crimes Enforcement Network has cut off crypto exchange MEXC Global from the U.S. financial system after it said it facilitated $16 billion in illicit transactions tied to Iran, Russia, and North Korea. "Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system," said Treasury Secretary Scott Bessent.
Open source