WirepolicyBrief
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.
Brief
The US Treasury has ordered MEXC Global shut out of the American financial system, alleging it processed $16.7 billion tied to illicit activity. A November 6 announcement from FinCEN bars US institutions from sending or receiving funds involving the exchange, crypto transfers included, starting 30 days after Federal Register publication. The 24-page order covers suspected flows from May 2021 through May 2026. Treasury linked about $1.5 billion to Russian sanctions evasion, including Garantex dealings, and said flows exceeding $1 billion reached more than 40 Iranian exchanges. FinCEN also alleged that about $350,000 reached Sim Hyon Sop, a sanctioned North Korean money launderer, in 2025. Treasury Secretary Scott Bessent framed the matter as a choice between backing Iran and keeping access to the US system. The order does not freeze customer assets automatically and has no expiration date.
Why it matters: The order reaches money moving through US institutions, so overseas exchanges and banking partners could face disruption to deposits, withdrawals and liquidity.
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