TL;DR
Get hardware and tech essentials delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
The U.S. Treasury’s FinCEN has ordered U.S. financial institutions to stop sending funds to or receiving funds from crypto exchange MEXC, citing at least $16 billion in alleged illicit flows over five years. MEXC says it is reviewing the order and its anti-money-laundering controls while continuing to operate normally; the restriction takes effect 30 days after publication in the Federal Register.
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has ordered U.S. financial institutions to stop moving funds to or from crypto exchange MEXC, alleging the platform handled at least $16 billion in illicit flows over five years. The restriction, issued under a law targeting foreign institutions tied to illicit Russian finance, will take effect 30 days after publication in the Federal Register; MEXC says it is reviewing the action and continues to operate normally.
FinCEN issued the order on Friday under Section 9714 of the Combating Russian Money Laundering Act. Once effective, it will prohibit U.S. financial institutions from sending funds to or receiving funds from MEXC, including cryptocurrency transfers. The Treasury announced the action as part of Operation Economic Outcast, a campaign launched in August to cut Iran off from global finance. The order formally relies on alleged links to illicit Russian finance, because Section 9714 applies to foreign institutions connected to that activity.
FinCEN said MEXC processed nearly $1.5 billion linked to Russian sanctions evasion between May 2021 and May 2026. The agency also cited transactions involving sanctioned Russian crypto exchange Garantex and its successor, Grinex, as recently as June. It alleged roughly $1 billion in direct transfers to more than 40 Iranian crypto exchanges, along with $22 million linked to Iran’s central bank and the Islamic Revolutionary Guard Corps.
The Treasury’s broader allegation is that at least $16 billion in MEXC flows was tied to Iranian, North Korean and Russian sanctions evasion, cybercrime and other illicit activity. Those figures and connections are claims by the U.S. agency, not findings established in the source material as a court judgment. MEXC said it is reviewing the order and has started an independent review of its anti-money-laundering and sanctions controls.
U.S. Financial Access at Risk
If the order takes effect, it could make it harder for MEXC to connect with the U.S. banking and payments system, because covered financial institutions would be barred from processing transfers to or from the exchange. The restriction also includes cryptocurrency transfers, according to the Treasury’s description, rather than applying only to conventional bank payments.
The measure targets a major trading venue, not a small or little-used service. Treasury said MEXC ranked among the world’s 20 largest crypto exchanges as of September, processed more than $1 billion in daily trades and held about $5 billion in reserves. Those figures indicate the potential scale of the disruption, but they do not establish how many U.S. customers or transactions would be affected. The order concerns financial institutions in the United States; the source material does not say that MEXC itself has been shut down.
The action also shows how U.S. authorities are applying a Russia-focused legal provision to a large crypto exchange amid allegations involving several countries. That may be relevant to other international platforms that rely on access to U.S. financial services, although the order is specific to MEXC and does not, by itself, establish new restrictions on other exchanges.
Products Worth Considering
Ledger Flex + Folio Crypto Hardware Wallet
Trezor Safe 7 Crypto Hardware Wallet with Bluetooth and Color Touchscreen
Trezor Safe 5 Crypto Hardware Wallet with Color Touchscreen
As an affiliate, we earn on qualifying purchases.
A Larger Target Under Section 9714
MEXC is the largest crypto exchange targeted under Section 9714, according to the report. Earlier crypto-related targets under the provision included Bitzlato in 2023 and PM2BTC in 2024; both were described as much smaller. The law provides a mechanism for restricting U.S. financial institutions’ dealings with foreign institutions connected to illicit Russian finance.
The Treasury presented this action under Operation Economic Outcast, which it launched in August to restrict Iran’s access to global finance. However, the legal basis stated for the MEXC order is its alleged Russian-finance links, including the transactions FinCEN says involved Garantex and Grinex. The distinction matters: the operation’s broader focus on Iran does not change the stated statutory basis for this particular restriction.
MEXC announced last month that it would stop serving users in Russia and Belarus. That announcement predates the Treasury action, but the available source does not explain whether the decision was connected to the alleged transaction activity or whether it would affect FinCEN’s assessment.
“It is reviewing the order while continuing to operate normally.”
— MEXC
Scope and Findings Still Pending
The order’s effective date depends on its publication in the Federal Register; the source says it takes effect 30 days after publication but does not provide that publication date. Until then, the exact date the restrictions begin remains unclear.
The allegations are also not fully detailed in the available report. FinCEN’s cited totals include transactions associated with several types of alleged illicit activity, but the source does not explain the methodology used to calculate the overall $16 billion figure, how much may overlap across categories, or what share of the cited flows involved MEXC customers in the United States. It does not include a response from MEXC addressing each specific transaction allegation.
It is not yet clear how the order will affect MEXC’s operations outside the United States, its customers’ ability to withdraw or transfer assets, or any U.S.-based businesses that may use the platform. The source also does not report whether MEXC plans to challenge the order or what conclusions its independent controls review may reach.
Federal Register Date Sets Clock
The immediate milestone is publication of the order in the Federal Register. The restriction is scheduled to take effect 30 days afterward, at which point U.S. financial institutions will be barred from handling the specified transfers to or from MEXC.
MEXC says it is reviewing the action and conducting an independent examination of its anti-money-laundering and sanctions controls. The available information does not give a timetable for that review or describe any further steps the company may take. Further detail on the implementation of the order, MEXC’s response to the individual allegations and any effects on customers remains to be reported.
Key Questions
What did the U.S. Treasury order?
FinCEN ordered U.S. financial institutions to stop sending funds to or receiving funds from MEXC, including cryptocurrency transfers. The restriction takes effect 30 days after publication in the Federal Register.
Why is MEXC being targeted?
FinCEN alleges that MEXC handled at least $16 billion in flows tied to illicit activity over five years, including transactions connected to Russian sanctions evasion and Iranian crypto exchanges. These are government allegations reported in the source material, not a court finding established there.
Is MEXC shutting down?
The source does not say that MEXC is shutting down. The exchange says it is operating normally while reviewing the order and its compliance controls. The order restricts covered U.S. financial institutions from processing transfers to or from the platform.
When does the restriction begin?
It begins 30 days after the order is published in the Federal Register. The source material does not provide the publication date, so the exact effective date is not yet established there.
What remains unknown about the case?
The source does not provide the full basis for calculating the $16 billion figure, the order’s precise effect on customers outside the United States, or the outcome of MEXC’s independent controls review. It also does not report whether the exchange will contest the action.
Source: coindesk.com
