The US Financial Crimes Enforcement Network (FinCEN) plans to restrict US financial institutions from conducting transactions with crypto exchange MEXC. Before the measure takes effect, OKX founder Star Xu has warned users not to transfer funds directly from MEXC to OKX, saying linked deposits could be frozen and accounts could face scrutiny. FinCEN alleges that MEXC handled at least $16.7 billion in suspected illicit funds between May 2021 and May 2026. MEXC says trading, deposits and withdrawals are operating normally and customer assets are safe.
FinCEN order has a 30-day lead time
The Treasury Department agency issued the order on November 6. It applies to US financial institutions and is due to take effect 30 days after publication in the Federal Register, meaning the restrictions could begin as early as December. Xu acknowledged the transition period but said OKX had already tightened related controls. He said the exchange was treating FinCEN's special measure with caution similar to its approach to sanctions.
Some users have said on social media that deposits transferred from MEXC were flagged as coming from “potentially high-risk addresses,” delaying the credits to their accounts. Xu said such funds could be frozen, but did not say that all related transfers would be blocked. The FinCEN order itself does not amount to a freeze or seizure of MEXC's platform assets.
MEXC recorded net outflows of about $126.03 million in the 24 hours around the announcement, while on-chain tracking put its monitored assets at about $4.35 billion. The outflows equate to roughly 2.9% of that asset total, but the available data do not establish whether all of the funds left because of FinCEN's action.
FinCEN cites Russia- and Iran-linked funds
FinCEN cited Russia-related transactions as one legal basis for the measure. The order says MEXC had nearly $1.5 billion in exposure to Russian sanctions-evasion risks between May 2021 and May 2026, including $232 million in direct transactions with sanctioned entities.
The order also says MEXC continued to transact with Garantex after the US sanctioned the exchange, handling about $129 million, and conducted roughly $4.1 million in transactions with its successor platform, Grinex. The most recent transactions with the two platforms date to June 2026. FinCEN also linked nearly $200 million to A7A5, a ruble-backed token, and said MEXC had more than $1.87 billion in Iran-related exposure. The agency said its assessment recognized that some MEXC activity might be legitimate, but concluded that the associated risks were more significant.
MEXC disputes that the order means its assets have been frozen or seized. Chief Executive Vugar Usi said the order itself would not freeze or confiscate any assets held by the exchange. The company says it has begun an independent review of its anti-money-laundering and sanctions controls and plans to engage with FinCEN. In July, MEXC appointed former Bybit executive Robert MacDonald as chief compliance officer. It is also working with blockchain analytics firms including Elliptic to seek reclassification of its addresses as “exchange” addresses.
MEXC is also scaling back in parts of Europe
The US action comes as MEXC prepares to exit some European markets. Dutch users are expected to lose access to the service from November 16, while the first French accounts entered an orderly closure process on November 18. MEXC was not listed in the European Securities and Markets Authority's register of authorised crypto-asset service providers in August; the register then included 323 active legal entities.
FinCEN's order separately alleges that MEXC operated without licences in Seychelles, Hong Kong and Japan. Those claims concern licensing in different jurisdictions and are distinct from the restrictions on US financial institutions.
Broker and futures firms may also fall within scope
US anti-money-laundering rules define “financial institution” to include not only banks but also securities broker-dealers and futures commission merchants. MEXC's RealStocks service involves such firms: the company's FAQ says accounts are carried by VistaMX Markets Limited, which it describes as a licensed US broker-dealer, while Atomic Vaults Securities handles execution, clearing and custody. MEXC said in August that RealStocks had more than 120,000 accounts. FinCEN's order does not mention the service, and it remains unclear whether it will be affected.
MEXC also has significant activity in derivatives markets. TokenInsight data show the platform handled $86 billion in commodity perpetual futures trading in the third quarter, representing 17.43% of the market and ranking second to Binance. MEXC has also said its market share in crypto gold futures reached 27.4% in the first quarter. FinCEN's order sets no end date for the restrictions, but allows for exemptions to be approved.