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FinCEN cuts MEXC Global off from U.S. finance over alleged $16 billion in illicit flows
Summary
The U.S. Treasury's Financial Crimes Enforcement Network on Friday issued a final order cutting crypto exchange MEXC Global off from the U.S. financial system, accusing it of facilitating at least $16 billion in illicit transactions tied to Iran, North Korea and Russia between May 2021 and May 2026, The Block, Cointelegraph, Decrypt and Bitcoin Magazine reported.
Decrypt and Bitcoin Magazine said the order, under section 9714(a) of the Combating Russian Money Laundering Act and framed as part of Operation Economic Outcast, will bar covered U.S. institutions from any funds transfers—including convertible virtual currency—to or from MEXC starting 30 days after Federal Register publication; Bitcoin Magazine noted the Register index still showed no MEXC document as of Friday evening, so the clock had not started.
Treasury alleged nearly $1.5 billion tied to Russian sanctions evasion, about $22 million linked to Iran's central bank and the IRGC Qods Force, roughly $200 million tied to the A7A5 stablecoin, and continued trading with sanctioned Garantex/Grinex as recently as June 2026 despite "severe deficiencies" in AML controls, Decrypt and Bitcoin Magazine said; Cointelegraph put MEXC assets near $4.48 billion (DefiLlama) while Treasury cited roughly $5 billion in reserves and more than $1 billion in daily volume.
Treasury Secretary Scott Bessent said financial institutions "cannot have it both ways" on Iranian regime support versus U.S. system access; outlets said MEXC had not issued a public response by Friday afternoon.
Updates
- Update, : Update (Nov. 7): CoinDesk reported that the order was issued under Section 9714 of the Combating Russian Money Laundering Act, which can only target foreign institutions tied to Russian illicit finance, so it formally rests on MEXC’s alleged Russian dealings even though Treasury announced it under its Iran-focused Operation Economic Outcast. CoinDesk said MEXC is the largest crypto exchange hit under that provision, after much smaller Bitzlato (2023) and PM2BTC (2024), and that it takes effect 30 days after publication in the Federal Register. Citing FinCEN, CoinDesk reported nearly $1.5 billion linked to Russian sanctions evasion between May 2021 and May 2026, including Garantex and Grinex transactions, about $1 billion in direct transfers to more than 40 Iranian exchanges and $22 million linked to Iran’s central bank and the IRGC. MEXC told CoinDesk it is reviewing the order, operating normally and has launched an independent review of its AML and sanctions controls.
- Update, : Update (Nov. 10): Binance stopped processing transactions involving MEXC and 13 affiliated entities, Decrypt reported. Withdrawals to MEXC will be declined and deposits from it held for compliance review, with users possibly restricted or offboarded. Decrypt said OKX has also warned users against sending funds to MEXC, citing Finance Magnates.
Key facts
- The Block / Cointelegraph / Decrypt / Bitcoin Magazine: FinCEN final order Friday severs MEXC Global from U.S. finance over alleged ≥$16B illicit flows (May 2021–May 2026) tied to Iran, DPRK and Russia.
- Decrypt / Bitcoin Magazine: Order under Combating Russian Money Laundering Act §9714(a); bars U.S. institutions from transfers to/from MEXC 30 days after Federal Register publication; not an OFAC designation.
- Decrypt / Bitcoin Magazine: Alleged ~$1.5B Russian sanctions-evasion flow; ~$22M to Iran CBI/IRGC Qods; ~$200M A7A5; Garantex/Grinex trades as recent as June 2026; "severe" AML deficiencies.
- Bitcoin Magazine: Named affiliates include Seychelles MEXC Global Ltd/MX Global Ltd, Estonia MEXC Estonia OÜ, Switzerland GIDA Technology AG and U.K. MXC Global Ltd; Register publication still pending Friday evening.
- Outlet note: Cointelegraph (DefiLlama) cites ~$4.48B assets Friday; Decrypt/Treasury cite ~$5B reserves and >$1B daily volume—reserve snapshots differ by source/timing.
- Decrypt: MEXC ranks ninth among spot exchanges on CoinMarketCap with about $812.5 million in 24-hour spot volume.