The United States Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has officially instructed domestic financial institutions to halt all money transfers connected to cryptocurrency exchange MEXC Global. The decisive regulatory action effectively cuts off the trading platform from the U.S. financial system following allegations that the entity facilitated more than $16 billion in transactions tied to cybercrime, sanctions evasion, and illicit financial activities.
According to official findings from FinCEN, the platform engaged in suspicious activity between May 2021 and May 2026, routing transfers for sanctioned entities based in Iran, Russia, and North Korea. Within this total, approximately $1.5 billion was specifically connected to efforts aimed at circumventing U.S. sanctions against Russia. The ban will officially take effect 30 days after the regulatory order is formally published in the Federal Register, creating significant shifts within the broader crypto ecosystem.
The action stems from Operation Economic Outcast, a targeted Treasury Department campaign inaugurated in August to isolate financial organizations that assist the Iranian regime in evading international restrictions. U.S. Secretary of the Treasury Scott Bessent emphasized the government's stance, stating, “Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system.” Bessent added that the Treasury intends to relentlessly sever economic lifelines and block attempts by the regime to bypass sanctions via digital assets.
Data provided by tracking service DefiLlama indicated that MEXC held approximately $4.48 billion in total assets as of Friday. The exchange did not provide a response prior to publication when contacted regarding the Treasury’s punitive measures.
