US Treasury bars MEXC Global over $16 billion in illicit flows
US banks and individuals now risk secondary sanctions or enforcement for any transfer of funds to or from the exchange.
The US Treasury's Financial Crimes Enforcement Network has barred MEXC Global, a Seychelles-based exchange with over 40 million users, from the US financial system. FinCEN says the platform handled at least $16 billion in illicit flows between May 2021 and May 2026, tied to cybercrime and Iranian, North Korean and Russian sanctions evasion. The regulator points to weak anti-money-laundering and customer verification controls. Because of the order, US banks and individuals now face secondary sanctions or enforcement risk for moving funds to or from the exchange. MEXC says it is operating normally, keeping user assets secure, and running an independent review of its controls.
Why it matters
The order puts a 40-million-user exchange outside the US financial system and makes dealings with it a legal risk for American banks and individuals, not just for the platform itself. FinCEN ties the exchange's weak money-laundering and customer checks to cybercrime and sanctions evasion involving Iran, North Korea and Russia. MEXC disputes nothing in the order beyond saying it runs normally and is reviewing its controls, so whether it can rebuild its standing with US counterparties will depend on that review.
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