US Treasury cuts crypto exchange MEXC Global off from the US financial system over alleged $16B in illicit flows

FinCEN has issued an order barring US financial institutions from sending funds to or receiving funds from MEXC Global, including crypto transfers. Treasury says the exchange facilitated at least $16 billion in illicit transactions between May 2021 and May 2026, tied to sanctions evasion by Iran, North Korea and Russia and to cybercrime. Reuters describes MEXC as Seychelles-incorporated.

FinCEN acted under Section 9714 of the Combating Russian Money Laundering Act, which only reaches foreign institutions tied to Russian illicit finance. Nearly $1.5 billion is linked to Russian sanctions evasion, including transactions with Garantex and its successor Grinex, and about $1 billion went directly to more than 40 Iranian crypto exchanges.

Treasury ranks MEXC among the 20 largest crypto exchanges, with over $1 billion in daily trades and about $5 billion in reserves. It is the largest exchange targeted under the provision. The order takes effect 30 days after publication in the Federal Register. MEXC says it is operating normally and reviewing the order.