The United States has moved to block cryptocurrency exchange MEXC Global from accessing the country's financial system over allegations of sanctions evasion and links to cybercrime. The US Department of the Treasury said the platform handled at least $16 billion in transactions connected to illegal activities between May 2021 and May 2026.
The action was announced on November 6 by the Financial Crimes Enforcement Network (FinCEN), a division of the Treasury Department. Officials said MEXC processed funds linked to Russian, Iranian, and North Korean networks, along with payments connected to ransomware attacks, scams, and darknet markets.
The decision is part of a wider effort by the US government to stop criminals and sanctioned groups from using cryptocurrency to move money across borders.
According to FinCEN, MEXC processed nearly $1.5 billion in transactions linked to Russian sanctions evasion. This included payments involving Russian crypto platforms Garantex and Grinex, which have faced US sanctions.
The agency also identified around $1 billion in direct transactions involving more than 40 Iranian cryptocurrency exchanges. Some of these platforms were already under US or international sanctions.
FinCEN further reported that the exchange handled money connected to ransomware groups, online scams, and darknet marketplaces. It estimated that nearly $2 billion in transactions were linked to cybercrime activities.
The agency blamed the activity on weaknesses in MEXC's customer checks and anti-money laundering systems. It said these problems allowed suspicious transactions to pass through the platform.
Under the new order, US financial institutions will not be allowed to process money transfers to or from MEXC Global. The restriction covers both traditional currency and cryptocurrency transactions.
The order will take effect 30 days after its publication in the Federal Register. Financial institutions that fail to follow the restrictions could face civil or criminal penalties.
However, the action does not mean that MEXC has been shut down worldwide. It mainly cuts the exchange off from the US financial system. Its operations in other countries are not automatically stopped by this order.
MEXC has acknowledged the order and said its legal and compliance teams are reviewing the matter. The exchange also announced an independent review of its anti-money laundering and sanctions controls.
In its response, the company said its platform was operating normally and customer assets remained secure. It also said it planned to work with FinCEN and other regulatory authorities to address the concerns.
The US action puts additional pressure on MEXC and raises questions about how cryptocurrency exchanges monitor transactions. It also shows that regulators are paying closer attention to digital asset platforms that may be used to move money linked to criminal activities.