US Treasury Targets MEXC Over Suspected $16 Billion in Sanctions Evasion
The US Treasury's Financial Crimes Enforcement Network has ordered American financial institutions to sever ties with cryptocurrency exchange MEXC Global, citing its alleged facilitation of roughly $16 billion in illicit transactions.
Treasury Action Against MEXC
The United States Treasury Department has moved to isolate MEXC Global from the American financial system through an enforcement order issued by its Financial Crimes Enforcement Network (FinCEN). The action follows investigations revealing that the exchange allegedly processed significant volumes of illicit funds, prompting the Treasury to mandate that US-based financial institutions cease handling transactions connected to the platform. The prohibition takes effect 30 days after the order appears in the Federal Register.
Scope of Alleged Violations
According to the US Treasury, MEXC is suspected of enabling at least $16 billion in transactions tied to illegal activities, including sanctions circumvention, cybercriminal proceeds, and other prohibited conduct. The alleged misconduct spans a five-year window from May 2021 through May 2026 and involved entities operating within or connected to Iran, Russia, and North Korea—all subject to comprehensive US sanctions regimes. Among the findings, approximately $1.5 billion was traced to activities designed to evade Russia-related sanctions.
Treasury Secretary Scott Bessent characterized the enforcement action as a continuation of the department’s zero-tolerance stance toward Iran. In a statement, he underscored that financial institutions operating in the United States must choose between supporting Iran’s economic objectives or maintaining access to American financial infrastructure, framing compliance as a binary proposition.
Market and Operational Impact
The enforcement action is part of a broader Treasury initiative dubbed Operation Economic Outcast, which commenced in August with the explicit goal of dismantling financial channels that permit sanctioned jurisdictions—particularly Iran—to circumvent international economic restrictions through digital asset venues. MEXC, which managed approximately $4.48 billion in total user assets as of the enforcement announcement, now faces significant operational constraints within the world’s largest financial market.
The exchange has not publicly responded to the allegations. The action reflects mounting regulatory pressure on cryptocurrency platforms to strengthen compliance infrastructure and prevent their networks from becoming conduits for sanctions evasion and financial crime.
As regulatory enforcement intensifies within the cryptocurrency sector, compliance-first exchanges operating within regulatory frameworks are likely to benefit from increased institutional trust and market share migration.
Source: US Treasury, via Cointelegraph. Not financial advice.