U.S. Treasury moves to cut off MEXC over $16 billion in alleged illicit flows
U.S. orders banks to stop payments to and from MEXC
The U.S. Treasury's Financial Crimes Enforcement Network, or FinCEN, has ordered U.S. financial institutions to stop sending funds to or receiving funds from crypto exchange MEXC.
MEXC is a platform where people buy and sell crypto. FinCEN alleges that MEXC handled at least $16 billion linked to sanctions evasion and other illicit activity over five years. The order also covers crypto transfers.
Main amounts and dates
- FinCEN alleges at least $16 billion in illicit flows over five years.
- Nearly $1.5 billion is linked to alleged Russian sanctions evasion between May 2021 and May 2026.
- About $1 billion is linked to alleged direct transfers to more than 40 Iranian crypto exchanges.
- $22 million is linked to Iran's central bank and the Islamic Revolutionary Guard Corps.
- The order takes effect 30 days after publication in the Federal Register.
What FinCEN says about the Russian case
FinCEN said the order was issued Friday under Section 9714 of the Combating Russian Money Laundering Act. That law can only be used against foreign institutions tied to Russian illicit finance.
Treasury announced the move under Operation Economic Outcast, a campaign launched in August to cut Iran off from global finance. The order itself rests on alleged dealings with Russia.
FinCEN said transactions included sanctioned crypto exchange Garantex and its successor Grinex, as recently as June. The source does not give a specific year for June.
What Treasury says about MEXC's size
According to Treasury, MEXC was ranked among the world's 20 largest crypto exchanges as of September. It was processing more than $1 billion in daily trades and held about $5 billion in reserves.
MEXC is the largest crypto exchange targeted under this provision. Earlier targets were Bitzlato in 2023 and PM2BTC in 2024, which Treasury described as far smaller.
What is confirmed and what is alleged
Confirmed from the source: FinCEN issued the order, and it will bar U.S. financial institutions from transfers to and from MEXC once it takes effect.
Alleged, not proven in the source: the $16 billion total, the Russian and Iranian amounts, and the links to Garantex, Grinex, Iran's central bank, and the Islamic Revolutionary Guard Corps.
MEXC last month announced it would stop serving users in Russia and Belarus. It said it is reviewing the order, continues to operate normally, and has launched an independent review of its anti-money laundering and sanctions controls.
Why the size of this target stands out
The source presents this as a change in scale. Previous uses of the same provision were against smaller exchanges, while MEXC is described as one of the world's 20 largest.
Next step and timing
The order takes effect 30 days after it is published in the Federal Register. The source does not give the publication date or the effective date.
Sources for this report
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.