Treasury Cuts Crypto Exchange MEXC Off From US Financial System

FinCEN’s order, part of Operation Economic Outcast, bars U.S. institutions from any transfers to or from MEXC, which Treasury says facilitated $16 billion in illicit finance tied to Iran, North Korea and Russia.

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1. Mechanisms of the FinCEN Order: The order acts as a prohibition on U.S. financial institutions from processing any funds transfers to or from MEXC, citing the exchange as a 'primary money laundering concern.' Unlike an OFAC sanction, this action is a specific funds-transmittal ban authorized under section 9714(a) of the Combating Russian Money Laundering Act, targeting the exchange's ability to use the American banking system.
2. Evidence of Illicit Activity and Scope: Treasury officials allege that MEXC facilitated approximately $16 billion in illicit transactions between May 2021 and May 2026. This activity includes nearly $1.5 billion linked to Russian sanctions evasion—specifically through ongoing interactions with designated entities like Garantex and Grinex—and roughly $22 million associated with Iran's Central Bank and the IRGC.

Sources

• Bitcoin Magazine
• Decrypt
• Cointelegraph
• The Block

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