US cuts MEXC off from American banks over $16bn in illicit flows
Why it matters
If your bank moves money for crypto firms, check now for any links to MEXC. Once the order takes effect, any payment touching it is a breach that can bring civil or criminal penalties.
Post to XThe short version
On 6 November the US Treasury ordered American banks and payment firms to stop sending money to or from MEXC Global, a big crypto trading platform. It says MEXC handled at least $16bn linked to crime and to sanctioned groups in Iran, North Korea and Russia between May 2021 and May 2026.
Here's what happened. On Friday the US Treasury's financial crimes unit, FinCEN, used a law aimed at Russian money laundering to cut MEXC Global off from the American financial system.
The Treasury says the exchange handled at least $16bn in illicit transactions between May 2021 and May 2026. The order itself puts the figure at $16.7bn. That includes nearly $1.5bn tied to Russian sanctions evasion and about $1bn in direct dealings with more than 40 Iranian crypto exchanges, according to the Treasury.
What does it mean in practice? US banks and other financial firms will be barred from sending any funds to or from MEXC. The ban starts 30 days after the order appears in the Federal Register, the US government's official journal. Breaking it can bring civil or criminal penalties.
Put it in context. MEXC is no small player. The Treasury says it handles about $1bn of transactions a day and lists more than 3,000 crypto assets. Affiliates based in the US fall outside the order.
The Treasury added that the order does not change banks' existing duty to report suspicious activity.
Where this comes from
- Operation Economic Outcast Severs MEXC Global's Access to the U.S. Financial System · US Treasury
- Imposition of Special Measure Prohibiting the Transmittal of Funds Involving MEXC Global · FinCEN
- Treasury cuts off MEXC Global over alleged $16 billion in transactions linked to Iran, North Korea and Russia · The Block
Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.
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