US Treasury Bans MEXC Exchange Over Alleged $16B in Illicit Transactions

The US Treasury has ordered crypto exchange MEXC Global cut off from the American financial system over allegations that it processed $16.7 billion linked to illicit activity.

The November 6 announcement says the Financial Crimes Enforcement Network (FinCEN) will prohibit US financial institutions from sending or receiving funds involving MEXC.

The restriction covers cryptocurrency transfers and takes effect 30 days after publication in the Federal Register.

Why Did the US Treasury Target MEXC?

According to the 24-page FinCEN order, MEXC handled approximately $16.7 billion in suspected illicit transactions between May 2021 and May 2026.

Treasury linked nearly $1.5 billion to Russian sanctions evasion, including transactions involving sanctioned exchange Garantex. It also identified more than $1 billion in direct transfers with over 40 Iranian crypto exchanges.

FinCEN further alleged that MEXC facilitated approximately $350,000 for sanctioned North Korean money launderer Sim Hyon Sop in 2025.

“Either you support the Iranian regime, or you have access to the US financial system,” Treasury Secretary Scott Bessent said.

MEXC Already Bans US Customers. Why Does This Matter?

MEXC’s own user agreement already prohibits American customers. Iran and North Korea are also restricted.

The existing restrictions govern who can trade on MEXC. Treasury’s order targets how money moves through US financial institutions, including transactions involving customers living elsewhere.

For example, a trader in Europe could see a crypto transfer between MEXC and a US-regulated exchange rejected once the prohibition takes effect.

The bigger concern is counterparty risk.

Foreign exchanges and banking partners may reconsider their relationships with MEXC to avoid regulatory exposure. This could disrupt deposits and withdrawals, potentially affecting liquidity worldwide.

The order does not automatically freeze customer assets or shut down MEXC globally.

However, it has no scheduled expiration date. How MEXC’s financial partners respond will determine how severely the restrictions affect its international operations.