The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an order that will bar covered U.S. financial institutions from sending funds to, or receiving funds from, crypto exchange MEXC Global. Treasury said on Friday that MEXC facilitated at least $16 billion in illicit transactions between May 2021 and May 2026. It takes effect 30 days after Federal Register publication. In checks on Saturday, AltcoinReporter did not locate the order in the Register’s published-document search or current public-inspection index; no calendar effective date was verified.
The action is a FinCEN order under the Combating Russian Money Laundering Act, not an OFAC sanctions designation. It places obligations on covered U.S. financial institutions rather than freezing MEXC’s assets. MEXC said it is reviewing the order and that its platform is operating normally.
What the order covers
According to the pre-publication text of FinCEN’s order, FinCEN found MEXC Global to be a financial institution of primary money laundering concern in connection with Russian illicit finance under section 9714(a) of the act. The operative provision reads: “A covered financial institution is prohibited from engaging in any transmittal of funds from or to MEXC Global.”
Three definitions set the scope:
Covered financial institution: the same meaning as “financial institution” in 31 CFR 1010.100(t), the Bank Secrecy Act definition.
Transmittals of funds: “the sending and receiving of funds, including CVC,” meaning convertible virtual currency, which the order says includes bitcoin.
MEXC Global: includes, among others, MEXC Global Ltd/MX Global Ltd (Seychelles), MEXC Estonia OÜ, GIDA Technology AG (Switzerland), MXC Global Ltd (United Kingdom), two former Singapore affiliates and successor entities that acquire its assets or carry on its affairs under a new name. The definition covers branches, subsidiaries and offices operating as financial institutions outside the United States. Any MEXC branches, subsidiaries or offices located in the United States are expressly excluded.
The order has no end date. FinCEN reserved the authority to impose conditions on certain transfers and to grant exemptions. It does not change Bank Secrecy Act duties such as suspicious activity reporting, or OFAC sanctions obligations. Institutions that willfully violate it may face civil or criminal penalties under 31 U.S.C. 5321 and 5322. The document is signed by Jimmy L. Kirby, FinCEN’s deputy director.
FinCEN acknowledged that institutions may be unable to stop incoming crypto before receipt. Its discussion allows discretion based on a transaction’s circumstances, including where the originating address is inaccessible or risk controls preclude returning funds to MEXC. It does not prescribe a blanket return-to-sender procedure. Existing BSA and OFAC obligations still apply.
Treasury’s allegations
The figures below are Treasury’s allegations, not court findings. Treasury said MEXC, founded in 2018, processed more than $1 billion a day and held about $5 billion in reserves as of September 2026, and ranks among the 20 largest crypto exchangers. It said MEXC’s anti-money-laundering controls had “severe deficiencies” despite policies that bar users in jurisdictions such as Iran and North Korea.
Treasury set out the following allegations:
Russia: between May 2021 and May 2026, handled nearly $1.5 billion linked to Russian sanctions evasion, including $232 million in direct transactions with entities sanctioned by the U.S., EU and/or UK. Treasury also alleged at least $26 million benefiting the OFAC-sanctioned A7 network and almost $200 million connected to the A7A5 stablecoin. Separately, it said transactions with Garantex and its successor Grinex continued as recently as June 2026, beyond the aggregate reporting window.
Iran: between May 2021 and May 2026, sent or received about $1 billion in direct transactions with more than 40 identified Iranian crypto exchangers, and facilitated about $22 million in transactions for the Central Bank of Iran and the Islamic Revolutionary Guard Corps and its Qods Force.
Treasury Secretary Scott Bessent framed the move around Iran: “Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system.” The legal finding itself rests on Russian illicit finance.
MEXC’s response
MEXC said in a statement that it “is aware of the order” and is reviewing it with its legal and compliance teams. It said: “MEXC is operating normally, and user assets remain secure.” The company said it takes the concerns seriously, intends to engage with FinCEN and other regulators, and has begun an independent review of its AML and sanctions controls. The statement did not address Treasury’s specific transaction figures.
Context and what to watch
The order is part of Treasury’s “Operation Economic Outcast,” which has also targeted Iran-linked digital asset activity. AltcoinReporter covered that campaign in Treasury naming digital assets as a target in its Iran sanctions push. Russia-linked crypto rails have also drawn European action, including the EU’s sanctions on HTX.
The first marker is the Federal Register publication date, which starts the 30-day clock. After that, watch whether U.S. banks, payment firms and crypto businesses covered by the Bank Secrecy Act publish compliance steps for blocking MEXC-linked transfers. Other open questions are whether FinCEN grants any exemptions, and what MEXC’s independent review finds.
FAQ
Is MEXC sanctioned by OFAC? The Treasury release and order describe a FinCEN order under section 9714(a), not an OFAC designation. The order prohibits covered U.S. financial institutions from transfers to or from MEXC Global and leaves OFAC obligations unchanged.
When does the order take effect? Thirty days after Federal Register publication. AltcoinReporter did not locate a published entry or current public-inspection listing in Saturday’s checks, so it has not verified a calendar effective date.
Does it cover crypto transfers? Yes. The order defines transmittals of funds as sending and receiving funds, “including CVC.”
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
