The U.S. Treasury’s Financial Crimes Enforcement Network issued a final order Friday cutting offshore exchange MEXC Global off from the American banking system over alleged connections to sanctions evasion by Iran, North Korea, and Russia, according to the department.
Published as a PDF pending Federal Register placement, FinCEN’s order classifies MEXC as a “primary money laundering concern in connection with Russian illicit finance” pursuant to section 9714(a) of the Combating Russian Money Laundering Act. Thirty days after that Register notice appears, covered U.S. financial institutions will be prohibited from handling any funds transfers—including convertible virtual currency—to or from MEXC.
Reuters reported the same cut-off Friday afternoon. The Treasury framed the action as part of Operation Economic Outcast. It is not an OFAC sanctions designation; the order notes that it does not alter Bank Secrecy Act obligations or OFAC rules, functioning instead as a FinCEN funds-transmittal ban rather than a Section 311 proposed rulemaking.
The Treasury alleges that MEXC processed at least $16 billion in illicit flows between May 2021 and May 2026. This includes nearly $1.5 billion connected to Russian sanctions evasion and approximately $22 million tied to Iran’s Central Bank and the Islamic Revolutionary Guard Corps’ Qods Force. Furthermore, the release states that the platform was still executing trades with the sanctioned exchange Garantex and its successor Grinex as recently as June 2026, more than four years after OFAC designated Garantex.
What the order does — and when
Signed by FinCEN Deputy Director Jimmy L. Kirby, the order applies to MEXC Global and designated international affiliates. These include Seychelles-incorporated MEXC Global Ltd and MX Global Ltd, Estonia’s MEXC Estonia OÜ, Switzerland’s GIDA Technology AG, and the U.K.’s MXC Global Ltd, along with any successors. Covered institutions that commit willful violations face criminal or civil penalties.
The 30-day countdown will not begin until the notice is published in the Federal Register. As of Friday evening Eastern time, the Register’s public index contained no MEXC document, consistent with the order’s cover note stating that publication remains pending.
Background on MEXC
Established in 2018 and previously known as MXC, MEXC ranks among the top 20 centralized crypto platforms globally by trading volume. According to the Treasury, the venue handled daily turnover exceeding $1 billion and maintained reserves close to $5 billion as of mid-2026, serving users in more than 170 countries. Because the exchange already lists the United States as a prohibited jurisdiction in its terms of service, Friday’s enforcement primarily targets any lingering dollar rails, banking partners, and counterparties that still interact with U.S. institutions.
International regulators have scrutinized the platform for years. In March 2024, the U.K. Financial Conduct Authority added MEXC Global Ltd to its warning list as an unauthorized entity. That same month, Hong Kong’s Securities and Futures Commission cautioned that the exchange was marketing services to local investors without a license. Additionally, the Seychelles Financial Services Authority noted in May 2026 that it took enforcement action against MX Global Ltd for unlicensed virtual-asset activities—a detail referenced in FinCEN’s order.
These compliance failures are supported by specific allegations rather than mere association. Aside from Russia, FinCEN points to roughly $1 billion in direct transactions involving more than 40 Iranian crypto exchangers, nearly $26 million with the OFAC-sanctioned A7 sanctions-evasion network, and nearly $200 million tied to the A7A5 stablecoin. The agency also alleges ties to North Korean facilitators and cybercrime flows. MEXC has not publicly responded to the Friday order, and its primary X account continued posting marketing posts throughout the afternoon.
Why it matters for bitcoin markets
Once the order goes into effect, U.S. banks, money transmitters, and other covered entities are legally barred from moving dollars or crypto to MEXC wallets or accounts. While offshore users can continue peer-to-peer trading, dollar on-ramps and any remaining banks clearing for MEXC face significant legal exposure. This enforcement mirrors earlier section 9714 cut-offs applied to platforms like Bitzlato, arriving during a busy week for sanctions that has also brought North Korean crypto designations, actions against an Iranian exchange, and Russia’s initiative to introduce bitcoin trading on the Moscow Exchange.
It remains to be seen whether MEXC will contest the findings, seek an exemption, or quietly redirect its liquidity. For now, the administrative record is established: a final FinCEN order under section 9714(a), a 30-day timeline triggered by Federal Register publication, and the Treasury’s allegation of at least $16 billion in illicit volume behind the prohibition.
FAQ
What did the U.S. Treasury do to MEXC?
FinCEN issued a final order under the Combating Russian Money Laundering Act to cut MEXC Global off from the U.S. financial system.
How much in illicit transactions is MEXC accused of facilitating?
The Treasury alleges MEXC facilitated at least $16 billion in illicit flows between May 2021 and May 2026.
When will the U.S. banking ban take effect?
The 30-day countdown begins once the order is officially published in the Federal Register.
Did MEXC allow trading with sanctioned entities?
Yes, FinCEN claims the platform processed trades with sanctioned entities like Garantex and Grinex as recently as June 2026.
