The MEXC crypto exchange has been cut off from the U.S. financial system after the Treasury Department accused the platform of processing billions of dollars in illicit transactions. The Financial Crimes Enforcement Network (FinCEN), the Treasury's financial intelligence unit, issued an order citing alleged sanctions evasion and links to cybercrime. MEXC said it is reviewing its controls and continues to operate normally.

According to the FinCEN order, MEXC allowed at least $16 billion in transactions linked to cybercrime operations and sanctions evasion involving Iran, North Korea and Russia over the five-year period between May 2021 and May 2026. The Seychelles-based exchange was founded in 2018 and says it serves more than 40 million users in more than 170 countries, offering access to 3,000 cryptocurrencies and tokenized assets. FinCEN administers the Bank Secrecy Act and has the authority to restrict entities it deems money laundering risks from the U.S. financial system, and the force of such an order is felt through the American banks and payment firms that would otherwise move dollar flows for the platform.

What the FinCEN Order Alleges

The Treasury said MEXC was still processing transactions as recently as June 2026 with Garantex and Grinex, two Russian entities under sanctions. It also said the exchange facilitated or processed at least $226 million in transactions benefiting or connected to the Russia-based A7 sanctions evasion network, which is sanctioned by the Office of Foreign Assets Control, the Treasury office that administers U.S. sanctions programs.

The order further describes direct transactions between MEXC and Iranian cryptocurrency exchanges. From May 2021 through May 2026, MEXC sent or received approximately $1 billion in direct transactions with more than 40 identified Iranian convertible virtual currency (CVC) exchangers — firms that convert digital assets into government-issued currency — the Treasury said, adding that some of those exchangers are subject to U.S. and international sanctions.

In a statement, the Treasury Department said MEXC had served as a hub for activity that included ransomware and scam payments, Iranian and North Korean sanctions evasion, and activity tied to Russian and other darknet markets.

"Between May 2021 and May 2026, MEXC Global had sent or received approximately $1 billion in direct transactions with more than 40 identified Iranian CVC exchangers, some of which are subject to U.S. and international sanctions," the department said.

FinCEN attributed the alleged activity to deficiencies in MEXC's anti-money laundering and customer identification and verification policies. The order warns that U.S. financial institutions and individuals could face secondary sanctions or enforcement actions for transfers to or from MEXC — the provision that gives the order its reach, since it puts any American bank, payment processor or individual on notice that handling MEXC-related flows carries legal risk for them as well. The action was also reported by BleepingComputer.

MEXC Says It Is Reviewing Its Controls

MEXC said it became aware of FinCEN's order on November 6, 2026, and has been reviewing it with its legal and compliance teams. The company said it had begun an independent review of its anti-money laundering and sanctions controls and intends to engage constructively with FinCEN and other relevant regulators and competent authorities worldwide.

The exchange also said it is operating normally and that user assets remain secure. MEXC characterized its response as a review of the order and its internal controls, alongside planned engagement with regulators in the United States and abroad. For the exchange's global user base, and for U.S. institutions weighing the order's warning, the immediate developments to watch are the findings of the independent anti-money laundering and sanctions review and the outcome of the engagement with FinCEN that the company says it intends to pursue.