The U.S. Treasury Department has ordered financial institutions in the country to sever ties with MEXC Global, a major cryptocurrency exchange accused of facilitating at least $16 billion in illicit transactions linked to sanctions evasion and cybercrime activities involving entities in Iran, North Korea, and Russia.
FinCEN labels MEXC a money laundering concern
The Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury that oversees anti-money-laundering (AML) efforts, has categorized MEXC as a “primary money laundering concern” in connection with ongoing illicit financing from Russia. MEXC remains among the world’s 20 largest crypto exchanges by trading volume. Founded in 2018, the exchange processes more than $1 billion in daily transactions, holds approximately $5 billion in reserves, and offers trading of over 3,000 tokens.
Treasury officials stated that, despite the exchange’s public claims regarding compliance and anti-money-laundering procedures, significant control failures persisted within its operations. U.S. authorities highlighted that MEXC continued to interact with entities sanctioned for facilitating illegal transactions, including Russian exchanges Garantex and Grinex, even as recently as June 2026.
FinCEN found that between May 2021 and May 2026, the platform processed at least $16 billion related to suspected illegal activities, including nearly $1.5 billion connected to efforts to evade Russian sanctions and $232 million in direct transactions with sanctioned organizations.
Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system, Treasury Secretary Scott Bessent said, emphasizing the department’s commitment to restricting the Iranian regime’s access to U.S. economic infrastructure.
FinCEN reported that MEXC also facilitated roughly $200 million in transactions involving the ruble-backed A7A5 stablecoin and about $22 million benefiting both Iran’s central bank and its Islamic Revolutionary Guard Corps.
The regulatory action comes as part of “Operation Economic Outcast,” a targeted campaign that prohibits American financial institutions from processing any funds to or from MEXC. This ban will take effect 30 days after it appears in the Federal Register.
Mini dictionary: FinCEN, or the Financial Crimes Enforcement Network, is a bureau within the U.S. Treasury that collects and analyzes financial transaction data to combat money laundering, terrorist financing, and other financial crimes.
Broader crackdown on crypto-linked sanctions evasion
U.S. authorities have intensified efforts to disrupt networks facilitating sanctions evasion via digital assets. The Treasury’s ongoing campaign extends from the Russian A7 Network—recently declared a transnational criminal organization—to Iran’s leading crypto exchange, Nobitex.
In the past month, Treasury designated A7 Network and began moving to disconnect its shell companies from the American financial sector, identifying over $179 billion in transactions routed through its ruble-backed stablecoin, often via Garantex and Grinex.
| Entity | Jurisdiction | Role in Sanctions Evasion | Funds Processed |
|---|---|---|---|
| MEXC Global | Multiple | Conduit for illicit funds tied to Russia, Iran, North Korea | $16 billion |
| Garantex | Russia | Sanctioned exchange for Russian illicit finance | Part of A7 Network flow |
| Grinex | Russia | Successor to Garantex, continued illicit activity | Not separately disclosed |
| Nobitex | Iran | Crypto exchange blacklisted for IRGC transfers | Not separately disclosed |
MEXC’s connections to sanctioned Russian and Iranian entities, as well as its handling of large-scale cryptocurrency flows tied to criminal organizations, contributed to Treasury’s assessment that the exchange is a significant node in a global sanctions-evasion ecosystem.
Treasury’s expanded sanction authority
This regulatory action coincides with Treasury’s newly broadened powers following determinations under Executive Order 13902. The Office of Foreign Assets Control (OFAC), a key Treasury department responsible for administering and enforcing economic sanctions programs, can now impose sectoral sanctions on anyone operating in Iran’s digital asset sector. The crackdowns now cover digital assets, gold, technology, aviation, and shipping.
The measure targeting MEXC derives from provisions in the Combating Russian Money Laundering Act instead of the usual sanctions route, underlining FinCEN’s evolving enforcement techniques as it works to insulate the U.S. financial system from high-risk offshore crypto activity.
As part of the same campaign, Treasury has also blacklisted Iran’s Nobitex exchange, accusing it of directing digital assets to Iran’s Islamic Revolutionary Guard Corps.
The department’s order leverages non-traditional regulatory tools as part of a larger strategy to isolate financial infrastructure believed to be threat vectors outside the U.S.-regulated banking system.
Treasury officials claim these actions exemplify a coordinated approach to reinforcing financial crime safeguards and preserving the integrity of the global financial system amid rising concern about digital asset misuse.
