The U.S. Treasury Department has moved to sever cryptocurrency exchange MEXC Global from the American financial system, accusing the platform of facilitating at least $16 billion in illicit transactions tied to Iran, North Korea and Russia.
The Financial Crimes Enforcement Network (FinCEN) issued an order designating MEXC as a primary money laundering concern. The action bars U.S. financial institutions from processing any funds transfers to or from the exchange. The order takes effect 30 days after publication in the Federal Register.
Allegations of Illicit Finance
FinCEN stated that between May 2021 and May 2026, the platform moved at least $16 billion connected to illicit activity. The agency cited severe deficiencies in MEXC’s anti-money-laundering controls as a key factor in the designation.
According to the Treasury, MEXC processed about $22 million benefiting Iran’s central bank and its Islamic Revolutionary Guard Corps. The exchange also handled roughly $200 million linked to the A7A5 stablecoin. FinCEN noted that MEXC was still transacting with sanctioned Russian exchange Garantex and its successor Grinex as recently as June 2026.
The order relies on a provision of the Combating Russian Money Laundering Act rather than a standard sanctions designation. This legal mechanism allows the Treasury to target entities involved in Russian illicit finance without requiring a full sanctions listing under other executive orders.
Market Scale and Official Response
MEXC is one of the world’s 20 largest crypto exchanges. FinCEN reported that the platform processes more than $1 billion in daily transactions and holds around $5 billion in reserves.
Treasury Secretary Scott Bessent addressed the decision in a statement, emphasizing the incompatibility of supporting sanctioned regimes with access to U.S. markets. “Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system,” Bessent said.
