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Treasury orders MEXC cut off over alleged $16.7B in illicit flows

FinCEN ordered U.S. financial institutions to block transfers involving MEXC, citing $16.7 billion in Russian illicit finance and links to Iran, North Korea and cybercrime.

By Web3 Hub Newsroom2 min read

Treasury orders MEXC cut off over alleged $16.7B in illicit flows

On Nov. 6, the U.S. Treasury’s Financial Crimes Enforcement Network ordered U.S. financial institutions to block funds transfers involving MEXC Global, citing at least $16 billion in illicit transactions linked to sanctions evasion and cybercrime, according to FinCEN’s announcement.

What transactions did FinCEN identify?

FinCEN’s order says MEXC facilitated $16.7 billion in funds connected to Russian illicit finance and other illicit activity between May 2021 and May 2026. The agency said its analysis identified nearly $1.5 billion in direct and indirect exposure to transactions linked to Russian sanctions evasion, including $232 million in direct transactions with U.S.-, EU- or UK-sanctioned entities.

The order also alleges billions of dollars in transactions benefiting Iran and its proxies, financial facilitators of North Korea, and cybercrime actors. FinCEN said the exchange transacted directly with sanctioned actors, including Russia-linked exchanges Garantex and Grinex.

How does the order restrict MEXC?

FinCEN designated MEXC Global a financial institution of primary money laundering concern in connection with Russian illicit finance under Section 9714 of the Combating Russian Money Laundering Act. The order prohibits covered U.S. financial institutions from processing certain transfers involving MEXC Global and its non-U.S. affiliates and successors.

The agency said MEXC’s stated anti-money laundering and customer verification policies barred accounts in some jurisdictions, but its review found transactions involving those jurisdictions. FinCEN’s order excludes MEXC affiliates, branches and offices operating in the United States.

When does the restriction take effect?

The order’s effective date is 30 days after its publication in the Federal Register, according to the published order text. The document says it was pending Federal Register review when issued, so the effective date depends on publication.

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