The U.S. Treasury Department has directed financial institutions to stop processing transfers involving cryptocurrency exchange MEXC Global, accusing the platform of facilitating at least $16 billion in illicit transactions tied to sanctions evasion and cybercrime.

The Financial Crimes Enforcement Network (FinCEN) announced the measure on November 6, 2026, under Operation Economic Outcast. The restrictions will take effect 30 days after publication in the Federal Register.

FinCEN Identifies Billions in Suspicious Crypto Transactions

According to the Treasury Department, which detailed the action in an official announcement, MEXC Global processed at least $16 billion in transactions connected to illicit activity between May 2021 and May 2026.

Regulators identified nearly $1.5 billion in transactions associated with Russian sanctions evasion, including approximately $232 million in direct transfers involving entities sanctioned by the United States, European Union, and United Kingdom.

Investigators also uncovered roughly $1 billion in direct transactions involving more than 40 Iranian cryptocurrency exchanges. About $22 million allegedly benefited Iran's central bank and the Islamic Revolutionary Guard Corps.

In addition, authorities linked the exchange to North Korean sanctions evasion, ransomware payments, cryptocurrency scams, and darknet market activity.

Taken together, the alleged flows touch sanctions programs covering Russia, Iran, and North Korea, as well as ransomware, scams, and darknet markets — multiple categories of illicit activity connected to a single offshore venue.

Weak Compliance Controls Raise Regulatory Concerns

Treasury officials accused MEXC Global of maintaining inadequate anti-money laundering controls despite publicly restricting customers from sanctioned jurisdictions. The exchange reportedly continued processing transactions involving sanctioned Russian platform Garantex and its successor, Grinex, as recently as June 2026. That gap between stated policy and observed activity sits at the center of Treasury's accusation.

MEXC ranks among the world's 20 largest cryptocurrency exchanges. According to Treasury figures, the platform processed more than $1 billion in daily transactions and held approximately $5 billion in reserves as of September 2026. The findings underscore the challenges regulators face in monitoring offshore cryptocurrency exchanges operating across multiple jurisdictions.

Restrictions Could Disrupt Exchange Operations

FinCEN issued the prohibition under Section 9714(a) of the Combating Russian Money Laundering Act. The measure bars covered U.S. financial institutions from transmitting funds to or from MEXC Global, and violations could result in civil or criminal penalties.

The restrictions could complicate banking relationships and payment processing for the exchange, and they illustrate how U.S. authorities can target offshore cryptocurrency businesses through financial infrastructure restrictions. However, the order does not automatically prohibit every cryptocurrency transaction worldwide involving MEXC; its force runs through covered U.S. financial institutions, which must block covered transfers once the restrictions take effect, 30 days after Federal Register publication.

The enforcement action reflects growing regulatory pressure on cryptocurrency exchanges accused of facilitating sanctions evasion. Its broader impact will depend on how financial institutions implement the restrictions and how MEXC responds.