The US Treasury Department is moving to restrict cryptocurrency exchange MEXC from accessing the American financial system, alleging that the platform processed at least $16 billion connected to sanctions evasion, cybercrime and other illicit financial activities involving Iran, North Korea and Russia.
The Financial Crimes Enforcement Network (FinCEN) issued the proposed restriction under Section 9714 of the Combating Russian Money Laundering Act. Once effective, the measure will prohibit US financial institutions from sending funds to or receiving funds from MEXC, including cryptocurrency transfers.
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The action was announced under Operation Economic Outcast, a US campaign launched in August to isolate Iran from the global financial system. However, the legal basis for the order is tied to MEXC’s alleged involvement in Russian illicit financial activity, as Section 9714 applies to foreign institutions connected to such transactions.
According to the Treasury, MEXC processed nearly $1.5 billion in transactions associated with Russian sanctions evasion between May 2021 and May 2026. These activities allegedly included transactions involving sanctioned exchange Garantex and its successor, Grinex, with some transfers reportedly continuing as recently as June.
FinCEN also identified approximately $1 billion in alleged direct transfers to more than 40 Iranian cryptocurrency exchanges, alongside $22 million linked to Iran’s central bank and the Islamic Revolutionary Guard Corps. The broader allegations include financial activity connected to North Korean networks and cybercrime.
The scale of the action makes MEXC the largest cryptocurrency exchange targeted under this provision. Previous enforcement actions included Bitzlato in 2023 and PM2BTC in 2024, both considerably smaller platforms.
MEXC was ranked among the world's 20 largest crypto exchanges as of September, processing more than $1 billion in daily trading volume and holding approximately $5 billion in reserves, according to the Treasury.
The exchange said it is reviewing the order while continuing normal operations. It also announced an independent assessment of its anti-money laundering and sanctions compliance controls. MEXC had previously said it would stop serving users in Russia and Belarus.
The restriction is scheduled to take effect 30 days after publication in the Federal Register. If implemented, it could create significant challenges for MEXC's access to US-linked financial infrastructure and increase regulatory pressure on international crypto exchanges over sanctions compliance.
