US Treasury Cuts Off MEXC Over Alleged $16B in Illicit Transactions

The United States Department of the Treasury has issued an official directive to disconnect cryptocurrency platform MEXC Global from the American financial system. According to the announcement made on Friday, the exchange is accused of processing a minimum of $16 billion in transactions tied to cybercrime, sanctions evasion, and other unlawful activities.

Financial Crimes Enforcement Network data revealed that the exchange handled transfers involving sanctioned entities located in North Korea, Russia, and Iran between May 2021 and May 2026. This total included roughly $1.5 billion specifically connected to Russian sanctions circumvention. In response, the Treasury bureau FinCEN directed domestic financial institutions to halt any money transfers involving the platform, with the restriction taking effect 30 days after publication in the Federal Register.

US Treasury blocks MEXC Global from the financial system over alleged illicit transactions.

“Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system,” stated Secretary of the Treasury Scott Bessent. He added that the department intends to continuously disrupt economic lifelines used by the Iranian regime to bypass sanctions via digital assets. This regulatory action forms a key component of Operation Economic Outcast, a government campaign initiated in August to target financial entities aiding Iranian sanctions evasion.

Data from DefiLlama indicates that the platform maintained approximately $4.48 billion in total assets as of Friday. Media outlets reached out to the digital asset exchange for a statement regarding the directive but had not received a reply prior to publication. The enforcement action arrives alongside broader concerns regarding digital security vulnerabilities across the blockchain sector.

Why it matters

This regulatory decision completely blocks a major digital asset exchange from operating within the American financial infrastructure. The directive directly affects the platform's ability to process funds through US institutions, signaling strict regulatory enforcement against platforms handling transactions for sanctioned nations.