Treasury Department Blocks MEXC Exchange Following $16B Illicit Activity Allegations
The Treasury Department has directed US financial institutions to halt all transfer processing for MEXC after identifying $16 billion in transactions connected to illegal operations.
On Friday, the United States Department of Treasury released an official directive to disconnect the cryptocurrency trading platform MEXC Global from America's financial infrastructure, following accusations that the exchange enabled no less than $16 billion worth of transactions connected to cybercriminal operations, sanctions evasion schemes, and additional illegal activities.
FinCEN, which operates as the Treasury's Financial Crimes Enforcement Network, made claims that MEXC processed financial transactions involving entities under sanctions from Iran, Russia and North Korea during the period spanning May 2021 through May 2026. The official press release reveals that this activity encompassed approximately $1.5 billion in transactions associated with efforts to evade Russian sanctions.
The directive will prohibit financial institutions operating in the United States from handling any money transfers that involve MEXC, with enforcement beginning 30 days following its publication in the Federal Register.
"Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system. Treasury will continue to sever the Iranian regime's economic lifelines and thwart its desperate attempts to circumvent U.S. sanctions using digital assets."
Secretary of the Treasury Scott Bessent
This enforcement measure falls under Operation Economic Outcast, an initiative the US Treasury Department established in August designed to disconnect financial organizations that assist Iran in bypassing sanctions.
Data from DefiLlama shows that the exchange maintained approximately $4.48 billion in total assets on Friday. Cointelegraph reached out to MEXC requesting a statement but did not obtain a reply before publication.