The U.S. Treasury Department has moved to sever cryptocurrency exchange MEXC Global from the American financial system, accusing the platform of facilitating at least $16 billion in transactions tied to sanctions evasion, cybercrime and other illicit activity involving Iran, North Korea and Russia.

The November 6 action, issued by the Financial Crimes Enforcement Network (FinCEN), the Treasury bureau charged with combating money laundering, prohibits U.S. financial institutions from processing fund transfers to or from MEXC, effectively cutting the exchange off from American financial infrastructure. The restriction falls under Operation Economic Outcast, a Treasury initiative targeting financial networks that enable sanctioned entities to move funds internationally.

According to the Treasury Department, MEXC allegedly processed billions of dollars in suspicious transactions between May 2021 and May 2026 despite maintaining policies that prohibit customers from sanctioned jurisdictions.

Treasury Identifies $16 Billion in Suspicious Crypto Transactions

FinCEN designated MEXC a primary money laundering concern in connection with Russian illicit finance, identifying nearly $1.5 billion in transactions linked to sanctions evasion. Approximately $232 million involved direct transfers with entities sanctioned by the United States, European Union or United Kingdom.

The exchange also allegedly continued processing transactions involving Garantex, which U.S. authorities sanctioned in April 2022, and its successor, Grinex, as recently as June 2026. Investigators identified another $26 million benefiting Russia's sanctioned A7 financial network and nearly $200 million connected to A7A5, a ruble-backed stablecoin used to facilitate cross-border transactions outside traditional banking channels.

Iranian activity represented another substantial component of the findings. MEXC allegedly processed approximately $1 billion in direct transactions involving more than 40 Iranian cryptocurrency exchanges, including some subject to international sanctions. Another $22 million benefited Iran's Central Bank, the Islamic Revolutionary Guard Corps and its Qods Force. FinCEN also identified activity associated with North Korean financial facilitators, ransomware payments, cryptocurrency scams and darknet markets.

Treasury Secretary Scott Bessent defended the restrictions, stating: “Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system.”

The allegations arrive amid broader enforcement scrutiny of cryptocurrency exchanges. U.S. prosecutors are separately investigating Binance over potential Iran-related sanctions violations, examining whether its compliance systems adequately prevented prohibited transactions.

MEXC Faces U.S. Financial Restrictions Under New Order

The FinCEN order was issued under Section 9714 of the Combating Russian Money Laundering Act — the statute authorizing Treasury to restrict U.S. financial institutions' dealings with foreign platforms designated as primary money laundering concerns — and covers transfers involving MEXC's overseas subsidiaries, branches and successor entities. The prohibition takes effect 30 days after publication in the Federal Register and has no scheduled expiration date. Financial institutions that violate the order could face civil or criminal penalties.

Importantly, the action is not a blanket prohibition on cryptocurrency trading worldwide or an automatic freeze of MEXC customer assets. It specifically restricts transactions involving covered U.S. financial institutions and does not constitute a separate OFAC sanctions designation — the mechanism through which Treasury formally adds entities to the sanctions lists it administers.

MEXC already excludes U.S. customers under its published terms and announced plans in October to discontinue services for users in Russia and Belarus. According to Treasury estimates, the exchange ranked among the world's 20 largest cryptocurrency trading platforms, processing more than $1 billion in daily transactions and maintaining approximately $5 billion in reserves.

The enforcement action comes shortly after the FBI attributed the $6.3 billion Binance hack to North Korea's TraderTraitor operation, underscoring continued U.S. efforts to disrupt illicit cryptocurrency networks.

MEXC's ability to maintain international operations will now depend in part on how financial institutions outside the United States respond to the restrictions and whether additional jurisdictions pursue similar measures.