US Treasury Orders Severing of MEXC from US Financial System, Citing at Least $16 Billion in Illicit Fund Flows

BlockBeats news, November 7 - The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has ordered the severing of MEXC's ties to the U.S. financial system, prohibiting U.S. financial institutions from processing fund transfers involving MEXC. FinCEN alleges that MEXC processed at least $16 billion in funds related to sanctions evasion, cybercrime, and other illicit activities between May 2021 and May 2026, involving entities related to Iran, North Korea, and Russia.

Among these, MEXC was involved in nearly $1.5 billion in Russian sanctions evasion transactions, including $232 million in direct transactions with entities sanctioned by the U.S., EU, and UK; it also provided at least $26 million in transaction services to the Russian sanctions evasion network A7 and processed nearly $200 million in transactions related to the A7A5 stablecoin.

Additionally, MEXC conducted approximately $1 billion in direct transactions with over 40 identified Iranian cryptocurrency dealers and processed about $22 million in transactions involving the Central Bank of Iran and Iran's Islamic Revolutionary Guard Corps (IRGC) and Quds Force.

The order was issued under Section 9714(a) of the Russia Anti-Money Laundering Act and will take effect 30 days after publication in the Federal Register. U.S. Treasury Secretary Bessent stated that U.S. financial institutions cannot continue to use the U.S. financial system while supporting the Iranian regime.