FinCEN Cuts MEXC Off From US Banks Over $16B Illicit Flows

American banks and payment firms will soon be barred from moving money to or from MEXC Global. On Friday, the Treasury's Financial Crimes Enforcement Network (FinCEN) issued an order cutting the exchange off from the US financial system, accusing it of facilitating at least $16 billion in illicit transactions.

The order bars US financial institutions from processing any funds transfers to or from MEXC. It takes effect 30 days after publication in the Federal Register. Under FinCEN's order, MEXC is a primary money laundering concern in connection with Russian illicit finance. Treasury also ties the exchange's flows to Iran and North Korea.

What FinCEN alleges

FinCEN said that between May 2021 and May 2026, MEXC moved at least $16 billion connected to sanctions evasion, cybercrime and other illicit activity. That figure includes nearly $1.5 billion tied to Russian sanctions evasion and $232 million in direct transactions with sanctioned entities.

The agency said MEXC transacted with sanctioned Russian exchanges Garantex and Grinex as recently as June 2026. It also processed roughly $200 million linked to the A7A5 stablecoin and about $22 million benefiting Iran's central bank and the Islamic Revolutionary Guard Corps (IRGC). FinCEN described "severe deficiencies" in MEXC's anti-money laundering (AML) controls.

Treasury's press release said the action "will protect the U.S. financial system from the significant illicit finance threats posed by MEXC Global."

"Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system"

Scott Bessent, Treasury Secretary

An unusual tool

The order does not rest on a standard sanctions designation. It relies instead on a provision of the Combating Russian Money Laundering Act, and its mechanism is a ban on funds transfers by US financial institutions.

The target is a large one. FinCEN said MEXC, founded in 2018 and among the world's 20 largest crypto exchanges, processes more than $1 billion in daily transactions, holds around $5 billion in reserves and lists more than 3,000 tokens. DefiLlama data showed about $4.48 billion in total assets on Friday. The two figures come from different sources and measure different things.

Bessent framed the move as part of a wider Iran campaign:

"Treasury will continue to sever the Iranian regime's economic lifelines and thwart its desperate attempts to circumvent U.S. sanctions using digital assets."

Scott Bessent, Treasury Secretary

The action falls under Operation Economic Outcast, a Treasury campaign launched in August to cut off financial entities that help Iran evade sanctions.

MEXC's position

MEXC publicly says it maintains AML controls and bars users in places such as Iran and North Korea. FinCEN says that compliance was riddled with severe deficiencies.

MEXC had not responded to media requests for comment at the time of publication.

Context

The order extends a run of Treasury actions against crypto venues tied to Russia and Iran. Last month, Treasury designated Russia's A7 Network a transnational criminal organization, flagging more than $179 billion in transactions through the A7A5 token, much of it routed through Garantex and Grinex. Iran's largest exchange, Nobitex, was sanctioned in June, and Iranian exchange BitBank followed in September.

Separately, OFAC has sanctioned 45 more targets tied to Prince Group.

For US financial institutions, the operative date is Federal Register publication: 30 days after it, transfers to or from MEXC are barred.