The U.S. Treasury is moving to cut crypto exchange MEXC Global off from the U.S. financial system. It says the exchange facilitated at least $16 billion in illicit funds. MEXC says it is reviewing the order and is operating normally.
The U.S. Treasury Department is moving to cut MEXC Global off from the U.S. financial system after identifying at least $16 billion in illicit transactions. The activity allegedly involved sanctions evasion, cybercrime and other illegal activity tied to Iran, North Korea and Russia.
Through its Financial Crimes Enforcement Network (FinCEN), the Treasury issued an order designating MEXC Global as a major money laundering concern under Section 9714(a) of the Combating Russian Money Laundering Act. The order prohibits U.S. financial institutions from processing funds transfers involving MEXC Global, including cryptocurrency movements connected to the exchange.
Treasury cites $16 billion between May 2021 and May 2026
The Treasury said MEXC facilitated at least $16 billion in illicit funds between May 2021 and May 2026. The transactions allegedly involved sanctions evasion, cybercrime, ransomware, scams and darknet market activity.
FinCEN said nearly $1.5 billion in transactions linked to Russia passed through MEXC, including $232 million in direct transactions with groups sanctioned by the US, EU and UK. It also found at least $26 million linked to Russia's A7 network, and another $200 million connected to the A7A5 stablecoin.
Iran features as well. MEXC reportedly handled around $1 billion in direct transactions with more than 40 Iranian crypto exchanges, and FinCEN found about $22 million linked to Iran's sanctioned central bank, the Islamic Revolutionary Guard Corps and its Qods Force.
MEXC says it is operating normally
MEXC responded on X that it is reviewing the order with its legal and compliance teams and plans to work with FinCEN, other regulators and authorities worldwide. According to cofounder Vugar Usi: "MEXC is operating normally, and user assets remain secure."
The exchange added that it has started an independent review of its anti-money laundering (AML) and sanctions controls. The order takes effect 30 days after publication in the Federal Register, and any violation could result in civil or criminal penalties.
Source: Coinpedia Fintech News
Trading involves risk.
Risk Disclaimer
