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FinCEN orders U.S. transfer ban on MEXC over alleged $16B flows

FinCEN ordered U.S. institutions to block transfers involving MEXC over alleged $16 billion illicit flows, with the restriction taking effect 30 days after publication.

Uruguay Can Editorial

FinCEN orders U.S. transfer ban on MEXC over alleged $16B flows

Until this week, no U.S. order barred transfers involving MEXC; on Nov. 6, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued one, citing at least $16 billion in alleged illicit flows. The Treasury announcement says those transactions, from May 2021 to May 2026, were connected to sanctions evasion, cybercrime and other illicit activity involving Iran, North Korea and Russia.

What transfers will the order block?

Once effective, the order bars U.S. financial institutions from transmitting funds to or from MEXC Global, the Treasury calls a convertible virtual currency exchanger. That covers transfers involving the exchange; it does not itself say customer accounts or crypto balances will be frozen. The order was issued under Section 9714(a) of the Combating Russian Money Laundering Act, and takes effect 30 days after publication in the Federal Register.

For institutions handling a transfer involving MEXC, the order sets out two consequences:

  1. After the effective date, they may not transmit funds from or to MEXC Global.
  2. Violations may bring civil or criminal penalties; existing Bank Secrecy Act and OFAC obligations remain in place.

What specific flows does Treasury allege?

Treasury says nearly $1.5 billion of the total was linked to Russian sanctions evasion, including $232 million in direct transactions with U.S.-, EU- and UK-sanctioned entities. It says MEXC was still processing transactions involving sanctioned exchange Garantex and its successor Grinex in June 2026. The agency also alleges about $1 billion in direct transfers with more than 40 Iranian crypto exchanges, and roughly $22 million in transactions for Iran’s central bank and the Islamic Revolutionary Guard Corps and its Qods Force.

How has MEXC responded?

MEXC said it was reviewing the order, operating normally and had begun an independent review of its anti-money laundering and sanctions controls, according to CoinDesk’s report. The restriction’s start date depends on Federal Register publication, so the announcement date alone does not establish when the transfer ban begins.

Sources