Binance has stopped processing transfers involving MEXC and its affiliates after US regulators named the exchange a primary money laundering concern. MEXC disputes the allegations and says its deposits and withdrawals remain operational.
Binance told customers on November 10 not to send or receive funds through its platform involving MEXC and 12 other named entities or categories tied to the exchange. The move follows a US Treasury order that accuses MEXC of facilitating illicit transactions worth $16 billion.
Binance rejects withdrawals and holds deposits
Under the new restrictions, withdrawals from Binance wallets to the listed entities will be rejected, while incoming deposits from them will be temporarily withheld for compliance checks. Customers whose deposits are flagged could face restrictions on their accounts during the review.
Depending on the outcome, Binance said it may impose further limitations or terminate access under its terms of use. However, it has not said how long the reviews could take or when affected deposits will be released.
FinCEN's order targets $16 billion in flows
The decision follows a November 6 order from the US Treasury's Financial Crimes Enforcement Network (FinCEN). According to FinCEN, at least $16 billion passed through the exchange between May 2021 and May 2026 in transactions linked to illicit activity involving Russia, Iran and North Korea.
The agency also alleged that MEXC kept inadequate anti-money laundering controls despite publicly claiming to restrict customers from sanctioned jurisdictions. US authorities identified approximately $1 billion in direct transfers involving more than 40 Iranian cryptocurrency exchanges, some already under sanctions.
MEXC and OKX respond
Binance is not the first major exchange to react. OKX chief executive Star Xu warned customers against transferring crypto directly from MEXC, saying deposits tied to affected platforms could be frozen.
MEXC answered on November 7, saying its trading services remained operational and customer assets were secure. The exchange said it had started an independent examination of its anti-money laundering and sanctions controls.
MEXC chief executive Vugar Usi later acknowledged higher withdrawal volumes but said deposits and withdrawals were continuing normally.
Source: crypto.news
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