US Treasury cuts off MEXC over alleged $16B in illicit transactions
Treasury orders U.S. institutions to stop processing MEXC transfers
The US Treasury bureau FinCEN on Friday ordered US financial institutions to stop processing transfers involving MEXC Global.
MEXC Global is a crypto exchange, a platform where people trade digital assets. The Treasury said it was cutting the exchange off from the US financial system over alleged illicit activity.
Key points from the announcement
- FinCEN accused MEXC of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity.
- The Treasury said the transactions involved sanctioned groups in Iran, Russia and North Korea between May 2021 and May 2026.
- About $1.5 billion was linked to Russian sanctions evasion, according to the official press release.
- The order will take effect 30 days after it is published in the Federal Register.
What Treasury Secretary Scott Bessent said
Secretary of the Treasury Scott Bessent said: "Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system."
He also said Treasury will continue to sever the Iranian regime's economic lifelines and thwart its attempts to circumvent US sanctions using digital assets.
The action is part of Operation Economic Outcast. The source says the Treasury campaign was launched in August to cut off financial entities that help Iran evade sanctions.
What is confirmed and what is still unclear
The order itself was reported by Cointelegraph, citing the Treasury. The $16 billion figure and the links to sanctioned groups are Treasury allegations, not findings confirmed in the supplied material beyond the Treasury statement.
Cointelegraph said it contacted MEXC for comment and had not received a response by publication.
According to DefiLlama, MEXC held about $4.48 billion in total assets as of Friday.
When the order takes effect
The order effectively bans US financial institutions from processing money transfers involving MEXC. It will take effect 30 days after publication in the Federal Register.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.