U.S. Treasury Orders Cutoff of Crypto Exchange MEXC Over $16 Billion in Alleged Illicit Flows

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final order that will bar covered U.S. financial institutions from sending funds to or receiving funds from crypto exchange MEXC, including crypto transfers, once the order is published in the Federal Register and 30 days pass.

The Order and Its Legal Basis

FinCEN issued the order under Section 9714(a) of the Combating Russian Money Laundering Act. FinCEN Deputy Director Jimmy L. Kirby signed the final order. The order covers MEXC Global and named affiliates operating outside the United States, including Seychelles-incorporated MEXC Global Ltd, also identified as MX Global Ltd, Estonia’s MEXC Estonia OÜ, Switzerland’s GIDA Technology AG and the United Kingdom’s MXC Global Ltd, plus successors. Covered financial institutions face civil or criminal penalties for willful violations.

The order is not an OFAC sanctions designation and not a Section 311 proposed rulemaking. The 30-day countdown starts when the notice is published in the Federal Register, not on the announcement date.

Alleged Illicit Flows

Treasury alleges MEXC facilitated at least $16 billion in illicit flows from May 2021 through May 2026. The allegations include:

• Nearly $1.5 billion linked to Russian sanctions evasion, including transactions involving sanctioned crypto exchange Garantex and its successor Grinex, as recently as June 2026.
• About $1 billion in alleged direct transfers to more than 40 Iranian crypto exchanges.
• About $22 million linked to Iran’s central bank and the Islamic Revolutionary Guard Corps’ Qods Force.
• Nearly $26 million in transactions involving the A7 sanctions-evasion network.
• Almost $200 million tied to the A7A5 stablecoin.
• Approximately $350,000 allegedly facilitated for sanctioned North Korean money launderer Sim Hyon Sop in 2025.

These are claims in a regulatory action, not a criminal conviction establishing MEXC’s liability.

Treasury’s Framing and MEXC’s Response

Treasury announced the action under Operation Economic Outcast, its campaign launched in August to cut Iran off from global finance. Treasury Secretary Scott Bessent said: "Either you support the Iranian regime, or you have access to the US financial system."

MEXC, which last month announced it would stop serving users in Russia and Belarus, said it is reviewing the order while it continues to operate normally and has launched an independent review of its anti-money laundering and sanctions controls. MEXC’s user agreement already lists the United States as a prohibited jurisdiction, and Iran and North Korea are restricted under the exchange’s terms as well.

Why it matters

The order targets MEXC’s access to the U.S. financial system, not its global exchange. Once the ban takes effect, a European customer could see a transfer between MEXC and a U.S.-regulated exchange rejected. The order does not automatically freeze customer assets or shut MEXC’s global exchange. The real impact will depend on how international banking and exchange partners adjust their services.

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Sources

• coindesk.com: U.S. Treasury moves to cut off crypto exchange MEXC over $16 billion in alleged illicit flows
• bitcoinfoundation.org: FinCEN Order MEXC Global Crypto: $16B Allegations
• bitcoinmagazine.com: FinCEN Cuts Off MEXC From U.S. Financial System Over Alleged $16B Illicit Flows
• hokanews.com: US Treasury Moves to Cut MEXC Off From Financial System Over $16 Billion in Illicit Funds - Hokanews

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.