FinCEN orders U.S. firms to block transfers involving MEXC

FinCEN has ordered U.S. financial institutions to stop transferring funds to or from crypto exchange MEXC Global, saying it facilitated $16.7 billion in transactions tied to illicit activity. The U.S. Treasury announcement says the activity, between May 2021 and May 2026, included sanctions evasion linked to Russia, Iran and North Korea, as well as cybercrime.

How does FinCEN’s order block transfers involving MEXC?

It bars covered U.S. financial institutions from transmitting funds that involve MEXC Global. The FinCEN order applies to the exchange’s overseas operations and prohibits transfers to or from it. In practice, it targets the U.S. financial firms that move funds, rather than ordering MEXC’s trading platform itself to shut down. Think of it as closing a payment route: the order directs U.S. firms not to carry transfers through that route.

The order is issued under Section 9714(a) of the Combating Russian Money Laundering Act. FinCEN says it found reasonable grounds to treat MEXC as a foreign financial institution of primary money-laundering concern in connection with Russian illicit finance. The order’s definition includes MEXC’s overseas subsidiaries, branches, offices and successor entities; it excludes any MEXC affiliates operating in the United States.

What transactions does FinCEN say it found?

FinCEN’s $16.7 billion figure covers funds it says were connected to Russian illicit finance and other activity, including sanctions evasion and cybercrime. Within that total, the agency identified nearly $1.5 billion in direct and indirect exposure to transactions linked to Russian sanctions evasion from May 2021 to May 2026. It also identified $232 million in direct transactions with entities sanctioned by the U.S., European Union or United Kingdom.

The agency says MEXC continued transacting with Russian exchanges Garantex and Grinex as recently as June 2026. It also says MEXC sent or received about $1 billion in direct transactions with more than 40 Iranian crypto exchanges over the five-year period. Separately, it identified about $22 million in transactions for Iran’s sanctioned central bank and the Islamic Revolutionary Guard Corps and its Qods Force. These are FinCEN’s findings and allegations, not a court judgment.

When does the restriction take effect?

The order takes effect 30 days after its publication in the Federal Register. That means the announcement alone does not establish the start date; the 30-day period runs from publication. Treasury says violations may bring civil or criminal penalties. The order does not change financial institutions’ existing Bank Secrecy Act reporting duties or sanctions administered by Treasury’s Office of Foreign Assets Control.

Sources and documents

• U.S. Treasury announcement — home.treasury.gov
• FinCEN order — fincen.gov