Treasury moves to cut MEXC off from US banks, citing at least $16 billion in illicit flows

The Financial Crimes Enforcement Network (FinCEN) issued a final order under section 9714(a) of the Combating Russian Money Laundering Act. Once it takes effect, US financial institutions may not send funds to or receive funds from MEXC Global. The ban applies 30 days after the order appears in the Federal Register. The Treasury said MEXC handled at least $16 billion in transactions linked to sanctions evasion by Iran, North Korea and Russia, and to cybercrime, according to Reuters as relayed by BWE News. FinCEN presented the action as part of a campaign it calls Operation Economic Outcast.

CoinDesk noted that the Treasury described the move as part of its pressure on Iran, but the legal basis is MEXC's alleged role in Russian illicit finance, because section 9714 is a Russia statute. The order does not tell MEXC to shut down and does not freeze customer balances on the platform, 24/7 Wall St. reported. FinCEN's findings are not a criminal conviction. The sources reviewed for this article do not include a detailed rebuttal from MEXC.

The tool has been used against much smaller targets. In January 2023, FinCEN used it for the first time against Bitzlato, which it said had received nearly half a billion dollars from illicit activity. A 2024 order targeted the exchanger PM2BTC. The MEXC figure is more than 30 times the Bitzlato figure.

The Treasury took other crypto-linked actions the same week. It sanctioned eight Canadian money-service businesses over crypto transactions it links to Iran and offered up to $20 million for information on Iran's nuclear program. Washington also expanded its naval blockade of Iran with a task force aimed at the country's ground transport. The Office of Foreign Assets Control (OFAC) separately named four individuals and 41 companies that it says concealed ownership and kept the Cambodia-based Prince Group's scam operations running. The Record described it as the third round against the group.