The US Treasury Department has directed all American financial institutions to sever ties with MEXC Global, a cryptocurrency exchange, following accusations that the platform enabled at least $16 billion in transactions tied to sanctions evasion, cybercrime, and other illegal activities.
FinCEN order targets cryptocurrency flows
On November 6, the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced that US financial institutions are now prohibited from transferring funds involving MEXC Global. This order will be effective 30 days after its formal publication in the Federal Register.
The action is part of Operation Economic Outcast, an initiative by the Treasury aimed at disrupting financial channels believed to be supporting sanctioned countries and organizations by moving money through both traditional banking and cryptocurrency systems.
FinCEN, a bureau within the US Treasury responsible for combating illicit finance, has increasingly focused on cryptocurrency platforms seen as vulnerable to abuse by sanctioned actors.
Treasury alleges $16 billion in illicit crypto transactions
According to the Treasury, MEXC Global allegedly facilitated more than $16 billion in illicit crypto transfers between May 2021 and May 2026. Authorities traced substantial volumes of these funds to connections in Russia, Iran, and North Korea.
An estimated $1.5 billion was connected to Russian sanctions evasion, which reportedly included $232 million in direct transactions with entities sanctioned by the United States, the European Union, or the United Kingdom.
Officials also claim that MEXC continued to process transactions involving Garantex and its successor Grinex through June 2026, despite both exchanges previously being sanctioned for facilitating cryptocurrency money laundering for Russia-linked networks.
Investigators identified roughly $200 million in transactions involving A7A5, a ruble-backed stablecoin issued by Russia’s A7 financial network. This digital asset has raised international concerns about its use in cross-border payments that bypass conventional sanctions.
Mini dictionary: A7A5 stablecoin — A ruble-pegged cryptocurrency used within the Russian A7 financial network. It has drawn scrutiny from global regulators due to its role in processing cross-border transactions that avoid traditional sanctions controls.
| Country or Entity | Alleged MEXC Transactions |
|---|---|
| Russia (all sources) | $1.5 billion |
| Directly sanctioned Russian entities | $232 million |
| Garantex/Grinex exchanges | Ongoing until June 2026 |
| A7A5 stablecoin (Russian) | $200 million |
| Iranian exchanges (over 40) | $1 billion |
| Iran’s central bank & IRGC (Qods Force) | $22 million |
The US Treasury also identified continuous interactions between MEXC and Russian ruble-backed stablecoins, further complicating its regulatory status.
Iran connections and regulatory response
The agency further alleged that MEXC Global processed about $1 billion in direct transactions with more than 40 separate Iranian cryptocurrency exchanges. Of these, $22 million was reportedly linked to Iran’s central bank and the Islamic Revolutionary Guard Corps (IRGC), including the Qods Force, a group designated by the US as a supporter of terrorism.
These findings build on earlier US efforts targeting Iran-linked digital asset platforms such as the exchange Nobitex, as well as other sanctions enforcement actions against Russian financial intermediaries moving through crypto channels.
FinCEN stated that deficiencies in MEXC’s anti-money-laundering policies allowed transactions that should have been blocked, despite the exchange’s own stated bans on servicing users from sanctioned countries.
The enforcement action was carried out under Section 9714 of the Combating Russian Money Laundering Act, a legal mechanism distinct from the traditional asset-blocking authorities of the Office of Foreign Assets Control (OFAC).
MEXC responded by affirming that operations continue as normal and that customer assets remain secure. The firm added that it is evaluating the Treasury’s order with its legal and compliance advisors while also initiating a third-party review of its compliance and sanctions protocols.
MEXC previously faced regulatory scrutiny in other jurisdictions, including a cease-and-desist order in Dubai for alleged unlicensed activities.
According to Treasury estimates, MEXC managed more than $1 billion in daily trading volume and maintained reserves totaling approximately $5 billion as of September 2026.
