Treasury cuts MEXC Global off from US funds transfers, citing $16 billion in illicit flows

The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) on November 6 issued an order that stops U.S. financial institutions from processing funds transfers involving the crypto exchange MEXC Global, saying the platform facilitated at least $16 billion in illicit transactions.

An order that closes the dollar channel, not the exchange

FinCEN said the order prevents U.S. financial institutions from processing funds transfers involving MEXC Global, and described it as effectively cutting the exchange off from the U.S. financial system. The order is issued under section 9714(a) of the Combating Russian Money Laundering Act, which prohibits U.S. financial institutions from engaging in any transmittal of funds from or to MEXC Global, according to Treasury.

The order takes effect 30 days after its publication in the Federal Register, according to the order's text, which at the time of FinCEN's announcement was still pending placement there. FinCEN said violations may result in civil or criminal penalties, and that the order does not change existing Bank Secrecy Act obligations or sanctions administered by the Treasury's Office of Foreign Assets Control (OFAC).

What FinCEN says MEXC Global handled

Treasury said MEXC Global was founded in 2018 and, as of September 2026, processed more than $1 billion in daily transactions and held approximately $5 billion in reserves. It called the exchange one of the top 20 largest convertible virtual currency exchangers in the world.

Between May 2021 and May 2026, Treasury said, MEXC Global facilitated the movement of at least $16 billion in funds connected to sanctions evasion, cybercrime and other illicit activity. The Treasury figures break down as follows:

• Russia: nearly $1.5 billion in transactions linked to Russian sanctions evasion, including $232 million in direct transactions with U.S.-, EU- and UK-sanctioned entities.
• Russian networks: at least $26 million benefiting the sanctioned A7 network and almost $200 million connected to the A7A5 stablecoin, which Treasury said the A7 network uses to help clients evade sanctions.
• Iran: approximately $1 billion in direct transactions with more than 40 identified Iranian exchangers, and approximately $22 million for the Central Bank of Iran and the Islamic Revolutionary Guard Corps and its Qods Force.

Treasury said MEXC Global was still processing transactions with the sanctioned Russian exchange Garantex, and its successor Grinex, as late as June 2026, more than four years after Treasury designated Garantex in April 2022.

The exchange's own rules, as Treasury describes them

Treasury said the platform claims to maintain anti-money laundering and customer verification policies and explicitly prohibits use by people in jurisdictions including Iran and North Korea. It said severe deficiencies in those controls nevertheless allowed transactions for individuals or entities in prohibited jurisdictions. The release did not include a response from MEXC Global.

Treasury Secretary Scott Bessent said in the release that "Treasury will continue to sever the Iranian regime's economic lifelines and thwart its desperate attempts to circumvent U.S. sanctions using digital assets." The action is part of what Treasury calls Operation Economic Outcast.

A tool aimed at the exchange's dollar plumbing, with limits we would keep in view

We think the order is a notable escalation in how Washington polices offshore crypto venues: rather than waiting for a designation of individuals, it targets the bank transfers that customers use to fund and cash out accounts. The opportunity is clearer rules of the road for exchanges that want U.S. banking access, and a signal that anti-money-laundering controls are priced into that access.

The threat is spillover for ordinary users and for tokens listed on the platform. The order covers funds transfers by U.S. institutions, and the release does not say how customers who hold balances on MEXC Global would be affected, so we would watch the Federal Register notice and the exchange's response for that. Our view would change if the figures in the order are contested or the effective date moves. We do not forecast prices and make no call on any token.

The view in this final section is FinanceInTime's editorial opinion, for information only. It is not investment, tax, legal or other advice, and it does not take your circumstances into account. Forecasts are uncertain and past results do not guarantee future ones.