EL7.AI
CryptoMedium•6 November 2026•
4 min read

FinCEN Restricts Transfers to and from MEXC After Allegations It Facilitated $16 Billion in Illicit Transactions

Key Facts

1Treasury said MEXC facilitated at least $16 billion in illicit transactions between May 2021 and May 2026.
2Transactions linked to evasion of Russian sanctions totaled nearly $1.5 billion, including $232 million with entities subject to U.S., European and U.K. sanctions.
3Direct transactions with more than 40 identified Iranian exchanges totaled about $1 billion between May 2021 and May 2026.
4The transfer restriction order takes effect 30 days after publication in the Federal Register.

On November 6, the U.S. Financial Crimes Enforcement Network (FinCEN) issued an order restricting money transfers to and from MEXC Global through U.S. financial institutions, after the Treasury Department said the platform facilitated at least $16 billion in illicit transactions between May 2021 and May 2026. Treasury linked those flows to evasion of sanctions imposed on Iran, North Korea and Russia, as well as cybercrime. The order is based on Section 9714(a) of the Russian Anti-Money Laundering Act and targets the role of U.S. financial institutions in routing funds to or from the platform. Treasury Secretary Scott Bessent said: "You either support the Iranian regime, or you have access to the U.S. financial system." The measure restricts money transfers handled by those institutions, according to the department.

Treasury said flows linked to evasion of Russian sanctions totaled nearly $1.5 billion between May 2021 and May 2026. This included $232 million in direct transactions with entities subject to U.S., European Union and U.K. sanctions. It added that MEXC processed at least $26 million in transactions benefiting the sanctioned Russian A7 network. It also processed transactions linked to the A7A5 stablecoin totaling nearly $200 million. The department said the platform was still processing transactions with Russian entity Garantex and its successor, Grinex, in June 2026.

On Iran, Treasury said MEXC sent or received about $1 billion in direct transactions with more than 40 Iranian cryptocurrency exchanges identified by the department. These transactions covered the period from May 2021 to May 2026. It also said the platform facilitated transactions worth about $22 million benefiting the sanctioned Central Bank of Iran, the Islamic Revolutionary Guard Corps and the Quds Force. The department linked those entities to U.S., European and U.K. sanctions, depending on the entity. It included these flows in its broader allegation that the platform facilitated transactions linked to sanctions evasion.

Treasury said the platform's illicit activity was not limited to sanctions-related transactions, but also included ransomware payments, fraud and activity in Russian dark-web markets and elsewhere. It added that MEXC says it has anti-money-laundering and customer identity verification policies, and bars use by people or entities in certain jurisdictions, including Iran and North Korea. But it said severe deficiencies in anti-money-laundering controls enabled transactions by individuals or entities in those prohibited jurisdictions. These allegations are based on the Treasury Department's statement on the order. The announcement did not describe the measure as a sanctions-list designation; it announced a FinCEN order restricting money transfers through U.S. financial institutions.

The order bars covered U.S. financial institutions from conducting money transfers to or from MEXC, but does not announce a global ban on trading on the platform. According to Treasury, the order takes effect 30 days after its publication in the Federal Register. The department also said existing obligations under the Bank Secrecy Act, including requirements to file suspicious activity reports, remain in force, as do sanctions administered by the Office of Foreign Assets Control (OFAC). It warned that violating the order could result in civil or criminal penalties. The announced restriction therefore applies to transfers routed through U.S. financial institutions, while the statement did not specify a broader global impact on platform users.

As for MEXC, Treasury says it was founded in 2018, is legally incorporated in Seychelles and operates in more than 170 countries. According to department data, the platform processed more than $1 billion in transactions daily and held reserves of about $5 billion as of September 2026. Treasury described it as one of the world's 20 largest cryptocurrency exchanges. It said the platform offers trading in more than 50 currencies and access to more than 3,000 cryptocurrencies and tokenized assets. In the context of the legal authority, FinCEN previously issued an order against the platform Bitzlato in January 2023 under Section 9714(a), describing the measure at the time as the first use of this authority.

Treasury said anyone who provides information about sanctions violations to the FinCEN whistleblower program may be eligible for an award if the information leads to a successful enforcement action resulting in monetary penalties exceeding $1 million. This was among the tools the department cited in its announcement of the order. It also reiterated that violations may result in civil or criminal penalties. The restrictions' start date remains tied to publication of the order in the Federal Register, as the department set a 30-day period after publication. The statement did not specify a calendar date for the order to take effect.