Key takeaways
- US Treasury orders MEXC Global financial access restrictions
- Regulators allege $16 billion in illicit cryptocurrency transactions
- MEXC denies operational disruption and launches compliance review
The US Treasury Department has ordered cryptocurrency exchange MEXC Global cut off from the American financial system after accusing the platform of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity.
According to the November 6 Treasury announcement, the Financial Crimes Enforcement Network (FinCEN) issued an order prohibiting US financial institutions from processing transfers involving MEXC Global. The restrictions will become effective 30 days after their publication in the Federal Register.
The action is part of Operation Economic Outcast, a Treasury initiative targeting financial networks allegedly helping sanctioned entities move funds through conventional banking and cryptocurrency infrastructure.
Treasury Traces $16 Billion in Alleged Illicit Crypto Activity
FinCEN alleges that MEXC facilitated at least $16 billion in illicit transactions between May 2021 and May 2026, involving entities connected to Russia, Iran and North Korea.
Nearly $1.5 billion was linked to Russian sanctions evasion, including $232 million in direct transactions with entities sanctioned by the United States, European Union or United Kingdom.
Treasury also alleges that MEXC continued processing transactions involving Garantex and its successor Grinex as recently as June 2026.
Both exchanges have previously faced US sanctions targeting Russian cryptocurrency laundering networks.
The investigation identified approximately $200 million in transactions involving A7A5, a ruble-backed stablecoin associated with Russia's A7 financial network.
The stablecoin has previously attracted scrutiny over its role in sanctions-resistant cross-border payments.
MEXC Allegedly Processed $1 Billion With Iranian Exchanges
Treasury further alleges that MEXC sent or received approximately $1 billion through direct transactions involving more than 40 Iranian cryptocurrency exchanges.
Another $22 million allegedly involved Iran's central bank and the Islamic Revolutionary Guard Corps, including its Qods Force.
The findings follow earlier US sanctions against Iranian exchange Nobitex and additional enforcement targeting Russia-linked financial intermediaries.
FinCEN said weaknesses in MEXC's anti-money-laundering controls allowed prohibited transactions despite the exchange's stated restrictions on users in sanctioned jurisdictions.
The order uses Section 9714 of the Combating Russian Money Laundering Act rather than a conventional OFAC asset-blocking designation.
MEXC Says Customer Assets Remain Secure
In its official response, MEXC said operations remain normal and customer assets are secure.
The company confirmed it is reviewing the order with its legal and compliance teams while launching an independent examination of its anti-money-laundering and sanctions procedures.
MEXC has previously encountered regulatory restrictions, including a Dubai cease-and-desist order involving alleged unlicensed operations.
Treasury estimates that MEXC processed more than $1 billion in daily transactions and maintained approximately $5 billion in reserves as of September 2026.
