Compliance
U.S. Treasury Cuts MEXC Global Off from Financial System Over $16 Billion in Illicit Transactions
The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) has issued a final order that effectively cuts off the offshore cryptocurrency exchange MEXC Global from the U.S. financial system. This action is based on allegations that MEXC facilitated at least $16 billion in transactions connected to sanctions evasion involving Iran, North Korea, and Russia.
According to the Treasury, MEXC is deemed a “primary money laundering concern” under the Combating Russian Money Laundering Act. The order prohibits U.S. financial institutions from processing any funds transfers to or from MEXC, which has been accused of processing nearly $1.5 billion tied to Russian sanctions evasion and approximately $22 million linked to Iran's Central Bank and the Islamic Revolutionary Guard Corps.
The order, which will take effect 30 days after its publication in the Federal Register, is part of Operation Economic Outcast, a campaign targeting financial networks that support Iran and its sanctions evasion activities. MEXC has been noted for its significant daily trading volume, reportedly exceeding $1 billion, and maintaining reserves of around $5 billion.
Despite MEXC's stated policies against engaging with sanctioned jurisdictions, FinCEN found deficiencies in its anti-money laundering controls that allowed prohibited transactions to continue. The exchange has not yet publicly responded to the order.
New Developments on MEXC Global
- The U.S. Treasury has ordered MEXC Global to be cut off from the American financial system due to allegations of processing approximately $16.7 billion in illicit transactions.
- The Financial Crimes Enforcement Network (FinCEN) will prohibit U.S. financial institutions from sending or receiving funds involving MEXC, effective 30 days after publication in the Federal Register.
- Between May 2021 and May 2026, MEXC is accused of handling nearly $1.5 billion linked to Russian sanctions evasion and over $1 billion in direct transfers with more than 40 Iranian crypto exchanges.
- FinCEN also claims MEXC facilitated around $350,000 for North Korean money launderer Sim Hyon Sop in 2025.
- Despite the ban, MEXC's user agreement already prohibits American customers from trading on the platform.
- The order does not automatically freeze customer assets or shut down MEXC globally, but it may impact liquidity and operations internationally.
FAQ
What is the reason for the U.S. Treasury's action against MEXC Global?
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) has cut off MEXC Global from the U.S. financial system due to allegations that the exchange facilitated at least $16 billion in transactions related to sanctions evasion involving Iran, North Korea, and Russia.
What does the order from FinCEN entail?
The order prohibits U.S. financial institutions from processing any funds transfers to or from MEXC Global, effectively isolating the exchange from the U.S. financial system.
How much money is MEXC Global accused of processing in relation to sanctions evasion?
MEXC Global is accused of processing nearly $1.5 billion tied to Russian sanctions evasion and approximately $22 million linked to Iran's Central Bank and the Islamic Revolutionary Guard Corps.
What is Operation Economic Outcast?
Operation Economic Outcast is a campaign targeting financial networks that support Iran and its sanctions evasion activities, under which the action against MEXC Global has been taken.
Has MEXC Global responded to the allegations or the order from FinCEN?
As of now, MEXC Global has not publicly responded to the order issued by FinCEN.