The US Treasury plans to bar US financial institutions from processing transactions involving crypto exchange MEXC Global, citing about $16.7 billion in suspected illicit activity. The Financial Crimes Enforcement Network (FinCEN) order also covers cryptocurrency transfers and is scheduled to take effect 30 days after publication in the Federal Register. The restrictions could affect transfers involving US institutions or regulated exchanges even when traders are based elsewhere.
FinCEN cites transfers linked to Russia, Iran and North Korea
In a 24-page order, FinCEN said MEXC processed about $16.7 billion in suspected illicit transactions between May 2021 and May 2026. The Treasury Department linked nearly $1.5 billion of that activity to efforts to evade Russian sanctions, including transactions involving the sanctioned exchange Garantex.
The order also cites more than $1 billion in direct transfers between MEXC and over 40 Iranian cryptocurrency exchanges. FinCEN further alleged that MEXC facilitated about $350,000 in 2025 for Sim Hyon Sop, a North Korean money launderer subject to sanctions.
Treasury Secretary Scott Bessent said there was a clear choice between supporting the Iranian regime and accessing the US financial system. The action focuses on restricting US financial institutions from handling funds connected to MEXC; it does not, by itself, specify which trading services the exchange can offer users.
US customer restrictions differ from the funds ban
MEXC's user agreement already lists the United States among jurisdictions where its services are prohibited. Iran and North Korea are also restricted. Those geographic limits govern who may trade on the platform, while FinCEN's order targets how funds move through US financial institutions. The two measures therefore have different scopes.
A trader based in Europe, for example, could still be affected if they try to transfer crypto between MEXC and an exchange regulated in the United States. Once the order takes effect, that transfer could be blocked. The outcome will depend on the route taken by the funds and how the financial institutions involved apply the restrictions.
Restrictions start 30 days after publication
The ban does not take effect on the day it was announced. Under the Treasury Department's schedule, the restrictions begin 30 days after publication in the Federal Register. The announcement does not explain how every MEXC-related user transaction will be handled in the meantime.
Users will be watching whether transfers to or from US financial institutions remain available, whether cross-platform crypto transfers are blocked, and how MEXC and its partners adjust their processes once the restrictions begin. The information released so far bars US financial institutions from conducting transactions involving MEXC, but does not detail how user accounts in different jurisdictions or the exchange's internal trading arrangements will be treated.