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

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has ordered covered U.S. financial institutions to stop transferring funds to or from crypto exchange MEXC Global, citing its alleged role in $16.7 billion of illicit flows. The FinCEN order says the figure covers transactions from May 2021 to May 2026 and includes Russian illicit finance, sanctions evasion and cybercrime. The order also describes transactions benefiting Iranian and North Korean actors.

How does the order cut off MEXC from U.S. finance?

It bars covered U.S. financial institutions from sending or receiving funds involving MEXC. The order defines funds to include convertible virtual currency, or CVC: digital assets that have a value equivalent to or substitute for currency. That means the restriction reaches crypto transfers as well as other covered transfers.

The mechanism works like closing a route through U.S. financial firms. FinCEN’s order targets institutions that process transfers, rather than directing crypto validators or blockchains to reverse transactions. It covers MEXC’s overseas branches, subsidiaries and successor entities; U.S.-based affiliates are excluded from its definition of MEXC.

When does the restriction take effect?

The order says it takes effect 30 days after publication in the Federal Register. The posted document says it has been submitted for publication and is pending public display, so the 30-day period runs from that publication date.

FinCEN issued the order under Section 9714 of the Combating Russian Money Laundering Act. The agency’s formal finding is that reasonable grounds exist to treat MEXC as a primary money-laundering concern in connection with Russian illicit finance. The order cites that Russian connection as the basis for the action; it also details allegations involving Iran, North Korea and other cybercrime actors.

What transactions does FinCEN cite?

FinCEN says its analysis identified $16.7 billion in funds connected to Russian illicit finance and other illicit activity over the five-year period. Within that total, it reports nearly $1.5 billion in direct and indirect exposure to transactions linked to Russian sanctions evasion, including $232 million in direct transactions with entities sanctioned by the U.S., European Union or United Kingdom. The agency says MEXC transacted with sanctioned exchanges Garantex and Grinex as recently as June 2026.

The order also alleges about $1 billion in direct transfers with more than 40 Iranian crypto exchanges and approximately $22 million in transactions connected to Iran’s central bank and the Islamic Revolutionary Guard Corps and its Qods Force. These are FinCEN’s findings and allegations, not a court judgment.

MEXC told CoinDesk it was reviewing the order while continuing to operate normally, and had begun an independent review of its anti-money-laundering and sanctions controls.

Sources

• FinCEN order — fincen.gov
• CoinDesk — coindesk.com