The United States government has severed crypto exchange MEXC Global from its financial system. Through the Financial Crimes Enforcement Network (FinCEN), the US Treasury Department issued a direct order against one of the world’s top 20 crypto exchanges, accusing it of facilitating at least $16 billion in illicit transactions between May 2021 and May 2026.
Financial institutions in the United States are prohibited from processing inbound and outbound fund transfers involving MEXC. The cut-off order takes effect 30 days after its official publication in the Federal Register.
Transaction Trail From Moscow to Tehran
FinCEN noted that the $16 billion in illicit funds was linked to internationally sanctioned entities in Iran, North Korea, and Russia. Around $1.5 billion of that total was tied to Russian sanctions evasion transactions.
MEXC’s internal compliance was found to suffer from severe deficiencies. The platform continued to process transactions with Garantex, a sanctioned Russian exchange, and its successor, Grinex, through June 2026. These activities carried on even though MEXC had previously claimed to block users from sanctioned jurisdictions.
The compliance violations did not stop with Russian exchanges. MEXC reportedly processed around $200 million in transactions involving the A7A5 token, a ruble-backed stablecoin tied to the criminal A7 Network. FinCEN also uncovered $22 million in fund flows benefiting the Central Bank of Iran and the Islamic Revolutionary Guard Corps (IRGC).
Targeting Crypto Outside Conventional Banking Channels
This action is part of Operation Economic Outcast, a US Treasury campaign launched in August to dismantle entities aiding Iranian sanctions evasion. US Treasury Secretary Scott Bessent emphasized the line drawn by the administration: “Financial institutions cannot have it both ways: you either support the Iranian regime, or you have access to the US financial system.”
In executing the cut-off, FinCEN invoked authorities under the Combating Russian Money Laundering Act. The authority used that statutory basis to target crypto asset infrastructure operating outside conventional correspondent banking networks.
Consequences for $4.48 Billion in Reserves
According to DefiLlama data as of Friday, MEXC Global holds approximately $4.48 billion in total user asset reserves. That substantial reserve now faces a complete disconnection from the United States banking network.
For market participants and customers holding funds on the global exchange, this 30-day window provides a concrete countdown before fund transfer rails with US banking are permanently severed. Compliance with international sanctions is no longer an optional add-on, but a decisive factor in whether a platform remains permitted to connect with the legitimate financial system.
Reported via Decrypt.
Read also: How to Read Candlestick Charts for Beginners
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
