Treasury orders U.S. transfer cutoff for MEXC

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order on Nov. 6 to bar U.S. financial institutions from transferring funds to or from crypto exchange MEXC Global, citing at least $16 billion in alleged illicit activity. The order, announced under Operation Economic Outcast, is a significant step against a large offshore exchange, but it does not take effect immediately. Treasury says its announcement of the FinCEN order makes the restriction effective 30 days after publication in the Federal Register.

The figure covers funds Treasury says MEXC facilitated between May 2021 and May 2026 in connection with sanctions evasion, cybercrime and other illicit activity. It is an allegation about transaction flows, not a finding that the full amount belonged to MEXC or represents customer losses. Treasury says that by September 2026 the exchange processed more than $1 billion in daily transactions and held about $5 billion in reserves, placing it among the world’s 20 largest convertible virtual currency exchangers.

What does the order stop U.S. firms from doing?

Once effective, the order bars U.S. financial institutions from transmittals of funds from or to MEXC Global. That reaches the exchange’s financial links to the United States; it is not a general order blocking MEXC’s platform or freezing all of its assets. Treasury issued it under section 9714(a) of the Combating Russian Money Laundering Act, and says violations may bring civil or criminal penalties. The action also leaves existing Bank Secrecy Act reporting duties and separate Office of Foreign Assets Control sanctions obligations in place.

The timing and legal basis matter. Treasury presented the move as part of its campaign targeting Iran’s access to global finance, while the statute used for the order is Russia-focused. CoinDesk’s report on the measure notes that earlier Section 9714 targets included Bitzlato in 2023 and PM2BTC in 2024. MEXC is the largest exchange targeted under the provision so far, according to CoinDesk. The distinction makes the order’s stated Russian links central to its legal footing, even as Treasury highlights alleged flows connected to several countries.

Which flows does Treasury cite?

Treasury says nearly $1.5 billion in MEXC transactions were linked to Russian sanctions evasion, including $232 million in direct transactions with entities sanctioned by the United States, European Union or United Kingdom. It says MEXC transacted with sanctioned Russian exchange Garantex and its successor Grinex as recently as June 2026. The department also cites about $1 billion in direct transactions with more than 40 identified Iranian crypto exchanges between May 2021 and May 2026, and approximately $22 million in transactions for Iran’s sanctioned central bank and the Islamic Revolutionary Guard Corps and its Qods Force.

Treasury says MEXC’s stated anti-money-laundering and customer verification controls had severe deficiencies that allowed activity involving prohibited jurisdictions and sanctioned actors. Those are the agency’s allegations underpinning its action. The public order does not itself establish a court finding on the alleged flows.

What should traders and counterparties watch next?

The first practical signal is the order’s publication in the Federal Register, which starts the 30-day countdown. The next is whether MEXC’s reported response—a review of the order and an independent examination of its anti-money-laundering and sanctions controls, while it says it continues normal operations—changes as the effective date approaches. For U.S.-linked counterparties, the key question is how they implement the transfer prohibition across payments and crypto transfers. The order’s reach will be clearer once its effective date arrives and institutions adjust their dealings with the exchange.

Sources and documents

• announcement of the FinCEN order — home.treasury.gov
• report on the measure — coindesk.com