U.S. Treasury Cuts MEXC Off From Financial System Over $16B in Alleged Illicit Flows

The U.S. Treasury Department’s Financial Crimes Enforcement Network has issued an order effectively cutting MEXC Global off from the U.S. financial system. FinCEN alleges that the crypto exchange facilitated at least $16 billion in transactions connected to sanctions evasion, cybercrime and other illicit activity between May 2021 and May 2026, including flows linked to Iran, North Korea and Russia. The order prohibits U.S. financial institutions from transmitting funds to or from MEXC and is scheduled to take effect 30 days after publication in the Federal Register. Treasury said MEXC processed more than $1 billion in daily transactions and held approximately $5 billion in reserves as of September 2026, making the action a significant escalation in U.S. scrutiny of offshore cryptocurrency exchanges.