The US Treasury on Friday ordered American financial institutions to stop processing transfers involving cryptocurrency exchange MEXC Global, accusing it of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity.
The order from the Treasury's Financial Crimes Enforcement Network (FinCEN) effectively bans US financial institutions from processing money transfers involving MEXC and takes effect 30 days after it is published in the Federal Register.
The action is part of Operation Economic Outcast, a Treasury campaign launched in August to cut off financial entities that help Iran evade sanctions.
FinCEN asserted that MEXC handled transactions involving sanctioned groups in Iran, Russia and North Korea between May 2021 and May 2026, including around $1.5 billion linked to Russian sanctions evasion, according to the Treasury's press release.
"Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system," said Secretary of the Treasury Scott Bessent. "Treasury will continue to sever the Iranian regime's economic lifelines and thwart its desperate attempts to circumvent U.S. sanctions using digital assets."
According to DefiLlama, the exchange held about $4.48 billion in total assets as of Friday. Cointelegraph contacted MEXC for comment but had not received a response by publication.
Analysis
Why This Matters
- The FinCEN order bars US financial institutions from processing transfers involving MEXC, cutting a major crypto exchange off from the US banking system within 30 days.
- It escalates Treasury's enforcement campaign against crypto intermediaries accused of helping sanctioned states move money, and could push other exchanges to tighten sanctions compliance.
- With about $4.48 billion in assets, the exchange's users and counterparties face potential disruption to US-linked payment channels.
Background
FinCEN, the Treasury's Financial Crimes Enforcement Network, polices money laundering and sanctions evasion in the US financial system. Its orders can bar American banks from dealing with a named institution, effectively isolating it from the US economy. US authorities have increasingly used such measures as digital assets become a channel for moving funds across borders.
What to Watch
- Whether the order takes effect as scheduled 30 days after publication in the Federal Register.
- Whether MEXC issues a public response or contests the Treasury's allegations.
- Whether Operation Economic Outcast produces similar actions against other crypto exchanges.
Checked
10 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedThe US Treasury ordered financial institutions to cut off MEXC over alleged $16 billion in illicit transactions.Cointelegraph.com News: “The US Department of Treasury on Friday issued an order to cut cryptocurrency exchange MEXC Global off from the US’ financial system after accusing it of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity.”
- SupportedThe FinCEN action targets MEXC over transfers linked to sanctioned groups in Iran, Russia and North Korea.Cointelegraph.com News: “The Treasury’s Financial Crimes Enforcement Network (FinCEN) asserted that MEXC handled transactions involving sanctioned groups in Iran, Russia and North Korea between May 2021 and May 2026.”
- SupportedThe Treasury ordered US financial institutions to stop processing transfers involving MEXC, accusing it of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity.Cointelegraph.com News: “The US Treasury bureau FinCEN on Friday ordered US financial institutions to stop processing transfers involving MEXC Global. The US Department of Treasury on Friday issued an order to cut cryptocurrency exchange MEXC Global off from the US’ financial system after accusing it of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity.”
- SupportedFinCEN said MEXC handled transactions involving sanctioned groups in Iran, Russia and North Korea from May 2021 to May 2026, including around $1.5 billion linked to Russian sanctions evasion, according to the Treasury’s press release.Cointelegraph.com News: “This included around $1.5 billion in transactions linked to Russian sanctions evasion, according to the official press release.”
- SupportedThe order effectively bans US financial institutions from processing transfers involving MEXC and takes effect 30 days after Federal Register publication.Cointelegraph.com News: “The order effectively bans US financial institutions from processing money transfers involving MEXC and will take effect 30 days after it is published in the Federal Register.”
- SupportedThe action is part of Operation Economic Outcast, a Treasury campaign launched in August to cut off financial entities that help Iran evade sanctions.Cointelegraph.com News: “The action is part of Operation Economic Outcast, a US Treasury campaign launched in August with aims to cut off financial entities that help Iran evade sanctions.”
- SupportedTreasury Secretary Scott Bessent said, “Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system,”Cointelegraph.com News: ““Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system,” said Secretary of the Treasury Scott Bessent.”
- SupportedBessent said, “Treasury will continue to sever the Iranian regime’s economic lifelines and thwart its desperate attempts to circumvent U.S. sanctions using digital assets.”Cointelegraph.com News: ““Treasury will continue to sever the Iranian regime’s economic lifelines and thwart its desperate attempts to circumvent U.S. sanctions using digital assets.””
- SupportedDefiLlama reported MEXC held about $4.48 billion in total assets as of Friday.Cointelegraph.com News: “According to DefiLlama, the exchange held about $4.48 billion in total assets as of Friday.”
- SupportedCointelegraph contacted MEXC for comment but had not received a response by publication.Cointelegraph.com News: “Cointelegraph contacted MEXC for comment but had not received a response by publication.”
