US Treasury Bans MEXC Exchange Over Alleged $16B in Illicit Transactions
The US Treasury has ordered crypto trade MEXC Global minimize off from the American monetary system over allegations that it processed $16.7 billion linked to illicit exercise.
The November 6 announcement says the Financial Crimes Enforcement Network (FinCEN) will prohibit US monetary establishments from sending or receiving funds involving MEXC.
The restriction covers cryptocurrency transfers and takes impact 30 days after publication in the Federal Register.
Why Did the US Treasury Target MEXC?
According to the 24-page FinCEN order, MEXC dealt with roughly $16.7 billion in suspected illicit transactions between May 2021 and May 2026.
Treasury linked almost $1.5 billion to Russian sanctions evasion, together with transactions involving sanctioned trade Garantex. It additionally recognized greater than $1 billion in direct transfers with over 40 Iranian crypto exchanges.
FinCEN additional alleged that MEXC facilitated roughly $350,000 for sanctioned North Korean cash launderer Sim Hyon Sop in 2025.
“Either you assist the Iranian regime, or you will have entry to the US monetary system,” Treasury Secretary Scott Bessent mentioned.
MEXC Already Bans US Customers. Why Does This Matter?
MEXC’s own user agreement already prohibits American prospects. Iran and North Korea are additionally restricted.
The present restrictions govern who can commerce on MEXC. Treasury’s order targets how cash strikes by way of US monetary establishments, together with transactions involving prospects dwelling elsewhere.
For instance, a dealer in Europe might see a crypto switch between MEXC and a US-regulated trade rejected as soon as the prohibition takes impact.
The greater concern is counterparty threat.
Foreign exchanges and banking companions might rethink their relationships with MEXC to keep away from regulatory publicity. This might disrupt deposits and withdrawals, doubtlessly affecting liquidity worldwide.
The order doesn’t mechanically freeze buyer property or shut down MEXC globally.
However, it has no scheduled expiration date. How MEXC’s monetary companions reply will decide how severely the restrictions have an effect on its worldwide operations.
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