FinCEN Cuts Off MEXC Global Over Alleged $16B in Illicit Transactions

The Financial Crimes Enforcement Network issued an order barring US financial institutions from processing funds transfers involving crypto exchange MEXC Global, according to a Treasury Department release on Nov. 6, 2026 ¹. Issued under Operation Economic Outcast, the enforcement action severs the platform from the US banking system after regulators determined it facilitated at least $16 billion in illicit activity between May 2021 and May 2026 ¹.

According to the Treasury, the exchange processed transactions tied to Russian, Iranian, and North Korean sanctions evasion, as well as cybercrime operations ¹. Treasury Secretary Scott Bessent stated that institutions cannot simultaneously support the Iranian regime and maintain access to US domestic finance ¹. MEXC Global, founded in 2018, held roughly $5 billion in reserves and handled over $1 billion in daily volume across 3,000 tokenized assets and cryptocurrencies as of September 2026 ¹.

Russian and Iranian Sanctions Ties

Regulators identified MEXC Global as a primary money laundering concern in connection with Russian illicit finance, alleging nearly $1.5 billion in transactions connected to Russian sanctions evasion ¹. FinCEN noted that the exchange executed $232 million in direct transactions with entities sanctioned by the US, EU, and UK, and continued processing transfers with sanctioned entity Garantex and its successor Grinex through June 2026 ¹. The exchange also reportedly processed nearly $200 million tied to the A7A5 stablecoin and handled $26 million for the sanctioned A7 network ¹.

Beyond Russian networks, Treasury reported that MEXC Global routed roughly $1 billion in direct transfers involving more than 40 Iranian crypto exchanges between May 2021 and May 2026 ¹. The agency also alleged the venue facilitated approximately $22 million for the Central Bank of Iran and the Islamic Revolutionary Guard Corps' Qods Force ¹. The broader policy shift aligns with a tougher enforcement posture under the current administration, even as Treasury Secretary Scott Bessent Frames Crypto as Core to US Dollar Dominance.

The prohibition, authorized under section 9714(a) of the Combating Russian Money Laundering Act, exposes non-compliant financial institutions to civil and criminal penalties ¹. The directive takes effect 30 days after its formal publication in the Federal Register ¹.