FinCEN orders U.S. banks to block MEXC transfers

On Nov. 6, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) ordered U.S. financial institutions to stop processing transfers involving MEXC Global, citing at least $16 billion in funds linked to illicit activity. Treasury says the flows, recorded between May 2021 and May 2026, involved sanctions evasion and cybercrime. Its announcement of the order says the restriction takes effect 30 days after publication in the Federal Register.

That puts a limit on MEXC’s access to U.S. financial rails. The order applies to covered financial institutions handling transfers to or from the exchange; it does not itself say that all trading on MEXC worldwide is prohibited. Banks that violate the order may face civil or criminal penalties, Treasury says.

What transactions does the MEXC order cover?

It bars U.S. financial institutions from transmitting funds involving MEXC Global, including its overseas subsidiaries, branches, offices and successor entities. The order describes MEXC as an exchange operating outside the United States. In practice, a transfer routed through a U.S. bank could be blocked once the order takes effect.

The rule is based on section 9714(a) of the Combating Russian Money Laundering Act. FinCEN designated MEXC a “primary money laundering concern” in connection with Russian illicit finance, a legal finding that allows the agency to restrict certain transfers through U.S. financial institutions. The order does not change banks’ existing duties under the Bank Secrecy Act or sanctions administered by the Office of Foreign Assets Control.

FinCEN’s order sets a 30-day clock from Federal Register publication. Treasury’s announcement gives that interval but does not state a calendar effective date in the release, so users and payment providers will need to check the published notice for the date the restriction begins.

What did FinCEN say MEXC handled?

Treasury’s figures put the alleged activity at a scale that could draw attention from banks and crypto customers who use dollar transfers. The agency says MEXC processed more than $1 billion in transactions per day and held about $5 billion in reserves as of September 2026. It also says the platform ranked among the world’s 20 largest crypto exchangers.

Of the $16 billion in funds Treasury linked to illicit activity, nearly $1.5 billion was connected to Russian sanctions evasion, including $232 million in direct transactions with entities sanctioned by the U.S., European Union and United Kingdom. Treasury says MEXC was still processing transactions with Russia-linked Garantex and its successor Grinex as recently as June 2026.

The department also cites about $1 billion in direct transactions with more than 40 Iranian crypto exchangers between May 2021 and May 2026, and about $22 million involving Iran’s sanctioned central bank and Islamic Revolutionary Guard Corps, including its Qods Force. These are findings and allegations made by U.S. authorities; the announcement does not provide MEXC’s response.

The Block’s report on FinCEN’s action describes it as part of a wider U.S. crackdown on crypto platforms accused of helping Iran evade sanctions. The next signal is the Federal Register publication date: that will determine when U.S. financial institutions must begin blocking covered transfers.

Source material

• announcement of the order — home.treasury.gov
• report on FinCEN’s action — theblock.co