Binance has stopped processing cryptocurrency transfers involving MEXC and its affiliated entities after United States regulators designated the exchange a primary money laundering concern over at least $16 billion in alleged illicit transactions.

The restrictions, announced on November 10, cover more than a dozen entities associated with MEXC, including MEXC Global Limited, MEXC Estonia OÜ, GIDA Technology AG and MEXC Singapore Pte Ltd. According to Binance's official announcement, outgoing transfers from the exchange to the affected entities will be rejected, while incoming deposits will be temporarily withheld for compliance reviews. Customers attempting direct or indirect transactions with MEXC could face additional account restrictions or termination of services.

The measures follow a November 6 enforcement action by the US Treasury's Financial Crimes Enforcement Network (FinCEN), which accused MEXC of facilitating substantial transactions involving Russian sanctions evasion, Iranian financial networks, North Korean actors and cybercriminal operations. The prohibition is documented in a Federal Register notice.

FinCEN Alleges $16 Billion in Illicit Transactions

According to FinCEN, MEXC processed at least $16 billion in illicit financial activity between May 2021 and May 2026, including nearly $1.5 billion connected to Russian sanctions evasion. The Treasury investigation identified approximately $1 billion in direct transactions involving more than 40 Iranian cryptocurrency exchanges, as well as $22 million benefiting Iran's central bank and the Islamic Revolutionary Guard Corps. MEXC also allegedly continued handling transactions involving the sanctioned Russian exchanges Garantex and Grinex as recently as June 2026.

FinCEN's formal prohibition takes effect December 10, barring covered US financial institutions from transmitting funds to or from MEXC Global. The order does not itself freeze customer holdings or prohibit trading on the exchange outside its specified scope. For users, the practical distinction is that Binance's transfer controls and FinCEN's prohibition address movement of funds through specified channels, while the federal order does not by itself constitute a general freeze of MEXC customer assets.

Binance's move closely resembles its August decision to block transfers involving HTX, EXMO and nine other platforms following European sanctions targeting Russia-linked financial activity. Those HTX restrictions subsequently triggered wider compliance problems, with Kraken temporarily locking accounts after nearly 12,000 small HTX-linked transfers activated sanctions screening.

MEXC Challenges Action as Withdrawals Increase

MEXC CEO Vugar Usi confirmed on X that the exchange has opened communication with FinCEN through US law firms. The regulator acknowledged receiving a written request from MEXC on Monday, and the company intends to cooperate with the investigation. MEXC has also launched an independent review of its anti-money laundering and sanctions controls.

Withdrawals have increased since the designation, but Usi stated that deposits, withdrawals and trading remain operational, and the exchange has not reported a suspension of customer withdrawals.

On-chain investigator ZachXBT questioned the scale of FinCEN's allegations, arguing that large exchanges routinely process substantial flows associated with illicit activity. While acknowledging MEXC's historically relaxed compliance practices, he called for greater transparency around the $16 billion calculation, including comparisons with competing exchanges and the proportion of total trading activity considered illicit. ZachXBT also questioned the enforcement disparity between MEXC, HTX and other exchanges, revisiting concerns he previously raised about sanctions-related risk scores affecting ordinary HTX users.

Binance has not specified how long incoming MEXC transfers may remain under compliance review, or whether affected accounts will regain normal access once the checks are completed.

Source: Crypto Adventure