Treasury targets MEXC over alleged $16 billion in illicit flows

U.S. financial institutions will have to stop sending funds to or receiving funds from crypto exchange MEXC once a new Treasury order takes effect, narrowing the exchange’s access to U.S. financial channels. The Treasury announcement says FinCEN issued the order on November 6, alleging MEXC facilitated at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity between May 2021 and May 2026. Treasury says the flows involved Iran, North Korea and Russia, including transactions with sanctioned actors.

The order turns Treasury’s allegations into a coming restriction on transfers through U.S. financial institutions, while leaving MEXC’s wider operations outside its direct scope.

When does the MEXC transfer restriction take effect?

The order takes effect 30 days after publication in the Federal Register, Treasury says. It was issued under Section 9714(a) of the Combating Russian Money Laundering Act, which allows FinCEN to prohibit certain transfers involving a foreign financial institution found to be a primary money laundering concern in connection with Russian illicit finance. The restriction applies to U.S. financial institutions and transfers to or from MEXC; it is not a statement that the exchange has already been shut down globally.

Treasury’s case includes nearly $1.5 billion in transactions it says were linked to Russian sanctions evasion, including $232 million in direct dealings with U.S.-, EU- and UK-sanctioned entities. The agency also says MEXC was still processing transactions with Russian exchange Garantex and its successor Grinex in June 2026. Separately, it cites about $1 billion in direct transactions with more than 40 Iranian crypto exchanges and approximately $22 million involving Iran’s central bank and the Islamic Revolutionary Guard Corps and its Qods Force.

What does the order mean for MEXC users?

The order directs covered U.S. financial institutions to block the specified transfers; the announcement does not describe a freeze of customer assets or a ban on every person using MEXC. Treasury says the action does not change existing Bank Secrecy Act reporting duties or sanctions administered by OFAC. The practical effect for users will depend on how the restriction affects payment and transfer channels once it is in force.

CoinDesk reported that MEXC said it was reviewing the order, continuing to operate normally and launching an independent review of its anti-money laundering and sanctions controls. Those statements do not resolve the allegations, which are FinCEN’s findings rather than a court judgment. The order’s stated legal basis is Russian illicit finance, even as Treasury frames the action within its broader campaign against financial flows linked to Iran.

References

• Treasury announcement — home.treasury.gov