The US Treasury has moved to cut MEXC Global off from the American financial system, accusing the cryptocurrency exchange of facilitating at least $16 billion in transactions linked to illicit activities. The action targets alleged sanctions evasion, cybercrime, and financial networks connected to Russia, Iran, and North Korea.

FinCEN Order Directs US Financial Institutions to Halt MEXC Transfers

The Financial Crimes Enforcement Network (FinCEN), a bureau of the US Treasury Department that serves as the country's financial intelligence unit, issued the order on November 6, directing US financial institutions to stop processing funds transfers involving MEXC. According to the directive, the covered transactions took place between May 2021 and May 2026. FinCEN released the measure under Section 9714 of the Combating Russian Money Laundering Act, and the order will come into force 30 days after its publication in the Federal Register. That structure gives US financial institutions a defined compliance window between publication and enforcement.

According to Treasury Secretary Scott Bessent, financial institutions cannot provide financial assistance to the government of Iran while gaining access to the US financial system. The statement corresponds to Washington's broader actions to restrict financial networks associated with sanctioned countries and groups.

🚨𝗝𝗨𝗦𝗧 𝗜𝗡: 🇺🇸The US Treasury says a FinCEN order will cut off MEXC Global from the US financial system. According to the Treasury, MEXC facilitated at least $16 billion in illicit transactions linked to sanctions evasion involving Iran, North Korea, and Russia. pic.twitter.com/pBnf8T1FYF

— DustyBC Crypto (@DustyBC) November 6, 2026

MEXC Global Faces Restrictions Over $16 Billion in Transactions

FinCEN reported at least $16 billion in suspicious transactions processed by MEXC over five years. According to the agency, those transactions were related to sanctioned parties, ransomware payments, scams, and darknet markets across the five-year review period. FinCEN further stated that the exchange's anti-money laundering measures did not prevent the prohibited transactions from being processed.

Although MEXC maintained customer verification and anti-money laundering procedures, it still allowed users from banned countries to access its services. The US Treasury pointed to significant problems with the company's compliance systems, raising questions about its ability to monitor its customers and transactions within high-risk financial networks.

By September 2026, MEXC had grown into one of the top 20 cryptocurrency exchanges worldwide, according to the US Treasury. The company processed transactions worth over $1 billion per day, held $5 billion in reserves, and gave users access to more than 3,000 cryptocurrencies and tokenized assets.

US Treasury Identifies $1.5 Billion in Russian Sanctions Evasion

Russian-related transactions made up a substantial portion of the activity identified by FinCEN. The total sum related to Russian sanctions evasion reached an estimated value of about $1.5 billion, and the agency determined that at least $232 million was sent directly to or received from entities sanctioned by the United States, the European Union, and the United Kingdom.

The US Treasury also alleged that MEXC processed transactions connected to Garantex, the Russian cryptocurrency exchange sanctioned by Washington in 2022, and to Grinex, which emerged as its successor. Those interactions allegedly took place until at least June 2026, raising doubts regarding the utilization of cryptocurrency exchanges for financial purposes. In addition, the exchange processed transactions worth at least $26 million for Russia's sanctioned A7 network and almost $200 million related to the A7A5 stablecoin, a ruble-backed token that the US government considers one of the components of financial channels used to circumvent restrictions.

Iranian Exchanges Linked to Nearly $1 Billion

Iranian financial networks accounted for significant activity identified by FinCEN as well. According to the report, approximately $1 billion in transactions was related to more than 40 cryptocurrency exchanges from Iran. Those transfers included payments connected to entities operating under international sanctions and raised concerns about MEXC's transaction monitoring procedures.

Additionally, according to FinCEN's report, approximately $22 million in transactions was carried out by Iran's Central Bank, the Islamic Revolutionary Guard Corps, and the Qods Force, all of which are sanctioned by the United States.

US Treasury Targets MEXC Under Section 9714

MEXC's designation comes amid Washington's wider campaign to curtail cryptocurrency infrastructure allegedly involved in supporting sanctioned regimes. Under the Operation Economic Outcast initiative, the US Treasury broadened its scope by expanding investigations into Iran's crypto industry. That effort has also targeted individual platforms: US officials sanctioned the Iranian crypto exchange Bitbank in September on allegations of financial ties with the Revolutionary Guard.

Unlike other restrictions aimed at entire countries, the new order will directly impact MEXC's ability to use American financial institutions. The measures could also affect financial institutions, payment processors, and companies dealing with transactions involving MEXC, and the order illustrates the necessity of compliance reviews for crypto exchanges with international users.

MEXC Says Users' Funds Are Safe as It Reviews the Order

MEXC commented on November 7 that its compliance teams are analyzing the order. The company stated that users' funds are safe and that deposit, withdrawal, and trading services are functioning normally. It added that an independent review of its AML and sanctions policies was underway and that it plans to cooperate with FinCEN and other appropriate regulatory bodies. With the effective date tied to Federal Register publication, that step is the immediate milestone to track as the independent review and MEXC's pledged cooperation with FinCEN proceed.

Source: Tron Weekly