Key Highlights:
- FinCEN has ordered U.S. financial institutions to cease processing transactions involving MEXC Global
- The exchange allegedly facilitated at least $16 billion in suspicious transactions between 2021 and 2026
- The action is part of “Operation Economic Outcast,” targeting sanctions evasion tied to Iran, Russia, and North Korea
- MEXC is accused of processing funds linked to sanctioned entities including Garantex and Iran’s Revolutionary Guard
- The order takes effect 30 days after publication in the Federal Register
The U.S. Treasury Department has taken decisive action against cryptocurrency exchange MEXC Global, ordering American financial institutions to halt all transactions involving the platform over allegations of facilitating at least $16 billion in illicit financial activity.
The Financial Crimes Enforcement Network (FinCEN) announced the order on Friday as part of Operation Economic Outcast, the Trump administration’s campaign to isolate Iran from international financial markets. The measure effectively cuts MEXC off from the U.S. financial system and takes effect 30 days after publication in the Federal Register.
Treasury’s Strong Stance
Treasury Secretary Scott Bessent delivered a blunt message in the announcement: “Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system.”
According to Treasury, MEXC processed at least $16 billion in suspicious transactions between May 2021 and May 2026, including funds connected to sanctioned entities in Iran, Russia, and North Korea. Despite the exchange maintaining customer verification and anti-money laundering policies, authorities allege it failed to prevent transactions involving sanctioned individuals and organizations.
Russia Connections Under Scrutiny
Approximately $1.5 billion in transactions were reportedly connected to Russian sanctions evasion, including $232 million transferred directly to or from entities sanctioned by the United States, European Union, and United Kingdom. The exchange allegedly continued processing transactions involving Garantex, a Russian cryptocurrency platform sanctioned by the U.S. in 2022, and its successor Grinex as recently as June 2026.
MEXC also purportedly processed at least $26 million benefiting Russia’s sanctioned A7 network and nearly $200 million connected to the A7A5 stablecoin, which U.S. officials have identified as a tool for circumventing financial restrictions.
Iranian Financial Ties
Iranian activity accounted for another significant portion of the suspicious transactions. Treasury said MEXC sent or received approximately $1 billion directly involving more than 40 Iranian cryptocurrency exchanges over the five-year period. Another $22 million in transactions involved Iran’s sanctioned central bank, Islamic Revolutionary Guard Corps, and its Qods Force.
Broader Crackdown on Crypto Platforms
The latest action follows a broader U.S. crackdown on cryptocurrency infrastructure allegedly supporting sanctioned governments. Treasury expanded its sanctions authority in August to cover Iran’s digital asset sector under Operation Economic Outcast, exposing foreign cryptocurrency businesses to potential penalties.
In September, U.S. authorities sanctioned Iranian cryptocurrency exchange Bitbank, alleging that financier Babak Zanjani used the platform to transfer hundreds of millions of dollars in bitcoin to the Revolutionary Guard.
MEXC had already begun withdrawing from certain international markets, winding down services for users in Russia and Belarus in October amid tightening European sanctions. Friday’s action goes further by restricting MEXC’s access to American financial institutions entirely.
FinCEN issued the order under Section 9714 of the Combating Russian Money Laundering Act. U.S. financial institutions will be prohibited from transmitting funds to or from MEXC once the restrictions take effect, with potential civil or criminal penalties for violations.
The action represents one of the most significant enforcement measures against a major cryptocurrency exchange in recent years, signaling the U.S. government’s increasing willingness to target platforms it believes are enabling sanctions evasion through digital assets.
