US Treasury cuts off MEXC over alleged $16B in illicit transactions

The US Treasury has barred US financial institutions from processing transactions involving cryptocurrency exchange MEXC Global, following accusations that the platform facilitated $16 billion in illicit activities, including sanctions evasion and cybercrime. The Financial Crimes Enforcement Network (FinCEN) disclosed that MEXC handled transactions with sanctioned entities in Iran, Russia and North Korea between May 2021 and May 2026, of which $1.5 billion were linked to Russian sanctions.

The Treasury's order will take effect 30 days after publication in the Federal Register, prohibiting US financial institutions from engaging in money transfers with MEXC. Treasury Secretary Scott Bessent emphasized that financial institutions must choose between supporting the Iranian regime or maintaining access to the U.S. financial system.

The move is part of Operation Economic Outcast, a campaign launched by the US Treasury in August to cut off financial entities aiding Iran in evading sanctions. As of Friday, MEXC reportedly held $4.48 billion in total assets.