US Orders Financial Firms To Block MEXC Transfers, Citing $16B In Alleged Illicit Flows

US financial institutions will be barred from sending or receiving funds involving MEXC Global under an order announced on 6th November by the Financial Crimes Enforcement Network (FinCEN). The measure includes cryptocurrency transfers and takes effect 30 days after publication in the Federal Register.

The Treasury Department alleges the exchange facilitated at least $16 billion connected to illicit activity between May 2021 and May 2026. MEXC says it is reviewing the order with its legal and compliance teams, remains operational and considers user assets secure.

The Restriction Covers Sending And Receiving

The order's operative provisions prohibit covered US financial institutions from transmitting funds to or from MEXC Global. They define a transfer as both sending and receiving, including convertible virtual currency, FinCEN's term for crypto that substitutes for conventional money.

Its definition of MEXC Global includes branches, subsidiaries, offices and successor entities operating outside the United States. It expressly excludes US branches, subsidiaries and offices from that definition. The restriction is an obligation on covered financial institutions, rather than an instruction that every MEXC customer worldwide must stop trading.

FinCEN also recognises a practical problem: an institution may receive crypto it cannot reject before arrival. The order allows discretion in handling such cases, including where returning funds would conflict with its risk controls. Existing financial crime reporting duties and sanctions obligations continue separately.

Treasury Alleges Sanctions-Related Flows

FinCEN relies on section 9714 of the Combating Russian Money Laundering Act, finding MEXC Global to be of primary money laundering concern in connection with Russian illicit finance. Treasury's release also alleges substantial exposure to Iranian and North Korean activity and cybercrime.

Treasury puts Russian sanctions-related transactions at nearly $1.5 billion, including $232 million in direct dealings with entities sanctioned by the US, EU or UK. It separately cites almost $200 million connected to A7A5, a stablecoin it says the A7 network uses to evade sanctions.

These amounts are the government's assessments. They do not establish that every transaction or customer on the exchange was illicit.

MEXC Announces A Controls Review

In its statement posted at 23:35 UTC on 6th November, MEXC says it intends to engage with FinCEN and other authorities. It has begun what it calls an independent review of its anti-money laundering and sanctions controls. The statement does not answer the government's individual transaction figures.

The published order leaves its start date tied to Federal Register publication and sets no end date. FinCEN reserves the ability to grant exemptions or impose conditions on particular transfers.