Treasury orders U.S. transfer ban on MEXC over $16B flows
FinCEN ordered U.S. institutions to block MEXC transfers over alleged $16 billion in illicit flows; it starts 30 days after Federal Register publication.
About Crypto Newsroom2 min read
$16 billion in transactions linked to sanctions evasion and cybercrime is the amount Treasury says MEXC Global handled from May 2021 to May 2026. On November 6, the department’s Financial Crimes Enforcement Network (FinCEN) issued an order to cut the exchange off from the U.S. financial system, according to Treasury’s announcement.
The order bars U.S. financial institutions from processing transfers to or from MEXC. The Block also reported the action, which Treasury says is based on alleged flows connected to Iran, North Korea and Russia.
Which transfers does the order cover?
It covers transfers involving MEXC processed by U.S. financial institutions. FinCEN issued the order under Section 9714(a) of the Combating Russian Money Laundering Act, identifying MEXC as a primary money laundering concern tied to Russian illicit finance.
The order does not itself prohibit all use of MEXC worldwide. Treasury says violations by financial institutions may bring civil or criminal penalties. Existing Bank Secrecy Act reporting duties and sanctions administered by the Office of Foreign Assets Control remain in place.
What transactions does Treasury cite?
Treasury says the $16 billion total includes funds linked to sanctions evasion, cybercrime and other illicit activity. It cites nearly $1.5 billion in Russian sanctions evasion, including $232 million in direct transactions with entities sanctioned by the U.S., European Union or United Kingdom.
For Iran, the department says MEXC sent or received about $1 billion in direct transactions with more than 40 Iranian crypto exchanges. It also cites about $22 million in transactions for Iran’s sanctioned central bank and the Islamic Revolutionary Guard Corps and its Qods Force. Treasury alleges that weaknesses in MEXC’s anti-money laundering controls allowed activity despite its stated restrictions on users in Iran and North Korea.
When does the transfer restriction take effect?
The order takes effect 30 days after publication in the Federal Register. The publication date has not been specified in Treasury’s announcement, so that date—and the following 30-day period—is the next timing to watch.
Sources and documents
- Treasury’s announcement — home.treasury.gov