FinCEN Orders US Banks to Sever Ties with MEXC Over $16 Billion Illicit Flows

Key Facts

The Financial Crimes Enforcement Network (FinCEN) issued an order prohibiting US banks from transacting with the MEXC cryptocurrency exchange. ShiftDelete.Net reported that the action follows the identification of $16 billion in suspicious transfers linked to sanctions evasion and cybercrime involving Russia, Iran, and North Korea between May 2021 and May 2026. The ban will take effect 30 days after its publication in the Federal Register, effectively cutting the platform off from the US financial system.

MEXC ranks among the world's 20 largest crypto exchanges, processing over $1 billion in daily transactions with approximately $5 billion in reserves as of September 2026. Following the announcement, the exchange saw net outflows of roughly $126 million over a 24-hour period on November 7, 2026, though CEO Vugar Usi stated on X that the order does not freeze or seize user assets. Treasury Secretary Scott Bessent noted that financial institutions cannot maintain access to the US system while facilitating illicit flows, marking this as a major enforcement action under anti-money laundering laws.