The U.S. Treasury Department has moved to cut cryptocurrency exchange MEXC Global off from the American financial system, accusing the platform of facilitating at least $16 billion in transac
The U.S. Treasury Department has moved to cut cryptocurrency exchange MEXC Global off from the American financial system, accusing the platform of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity involving Iran, North Korea and Russia.
The November 6 action, issued by the Financial Crimes Enforcement Network (FinCEN), prohibits U.S. financial institutions from processing fund transfers to or from MEXC, effectively severing the exchange’s access to American financial infrastructure.
The restriction forms part of Operation Economic Outcast, a Treasury initiative targeting financial networks that enable sanctioned entities to move funds internationally.
Between May 2021 and May 2026, MEXC allegedly processed billions of dollars in suspicious transactions despite maintaining policies that prohibit customers from sanctioned jurisdictions.
FinCEN designated MEXC a primary money laundering concern in connection with Russian illicit finance, identifying nearly $1.5 billion in transactions linked to sanctions evasion.
Approximately $232 million involved direct transfers with entities sanctioned by the United States, European Union or United Kingdom.
The exchange also allegedly continued processing transactions involving Garantex and its successor, Grinex, as recently as June 2026, despite Garantex having been sanctioned by U.S. authorities in April 2022.
Investigators identified another $26 million benefiting Russia’s sanctioned A7 financial network and nearly $200 million connected to A7A5, a ruble-backed stablecoin used to facilitate cross-border transactions outside traditional banking channels.
Iranian activity represented another substantial component of the findings.
MEXC allegedly processed approximately $1 billion in direct transactions involving more than 40 Iranian cryptocurrency exchanges, including some subject to international sanctions.
Another $22 million benefited Iran’s Central Bank, the Islamic Revolutionary Guard Corps and its Qods Force.
FinCEN also identified activity associated with North Korean financial facilitators, ransomware payments, cryptocurrency scams and darknet markets.
Treasury Secretary Scott Bessent defended the restrictions, stating: “Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system.”
The allegations come amid broader enforcement scrutiny of cryptocurrency exchanges. U.S. prosecutors are also investigating Binance over potential Iran-related sanctions violations, examining whether its compliance systems adequately prevented prohibited transactions.
The FinCEN order was issued under Section 9714 of the Combating Russian Money Laundering Act and covers transfers involving MEXC’s overseas subsidiaries, branches and successor entities.
The prohibition takes effect 30 days after publication in the Federal Register and has no scheduled expiration date. Financial institutions violating the order could face civil or criminal penalties.
Importantly, the action is not a blanket prohibition on cryptocurrency trading worldwide or an automatic freeze of MEXC customer assets. It specifically restricts transactions involving covered U.S. financial institutions and does not constitute a separate OFAC sanctions designation.
MEXC already excludes U.S. customers under its published terms and announced plans in October to discontinue services for users in Russia and Belarus.
The exchange ranked among the world’s 20 largest cryptocurrency trading platforms, processing more than $1 billion in daily transactions and maintaining approximately $5 billion in reserves, according to Treasury estimates.
The enforcement action comes shortly after the FBI attributed the $6.3 billion Binance hack to North Korea’s TraderTraitor operation, highlighting continued U.S. efforts to disrupt illicit cryptocurrency networks.
MEXC’s ability to maintain international operations will now depend partly on how financial institutions outside the United States respond to the restrictions and whether additional jurisdictions pursue similar measures.
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