FinCEN names MEXC a primary money laundering concern

On November 6, according to BeInCrypto, FinCEN placed MEXC in its top category of money laundering concerns. The order bars US financial institutions from transacting with the exchange. Treasury alleges at least $16 billion in illicit funds, and the order cites $16.7 billion based on blockchain analysis.

Binance responded by blocking transfers to MEXC and reviewing linked activity. In a statement posted on X, Binance said that effective immediately there would be no MEXC transactions. For its part, MEXC says the platform is running normally and that user assets are safe. Russian sanctions evasion accounts for close to $1.5 billion in the Treasury's findings, while roughly $1 billion has been linked to Iranian exchanges since May 2021. As of September, MEXC was processing more than $1 billion daily, BeInCrypto reported.

ZachXBT disputes the $16 billion figure and has requested the underlying data, while saying KuCoin was left unsanctioned despite worse conduct. Treasury has not said whether the data will be released. The ban takes effect 30 days after its notice is published in the Federal Register.