FinCEN orders US transfer block on MEXC over alleged $16B

FinCEN ordered U.S. financial institutions on Nov. 6 to stop processing transfers involving crypto exchange MEXC Global, saying it facilitated at least $16 billion in illicit transactions linked to sanctions evasion and cybercrime. The FinCEN announcement said the flows involved Iran, North Korea and Russia, including direct transactions with sanctioned actors.

What transfers will the order block?

The order bars covered U.S. financial institutions from processing funds transfers involving MEXC, including crypto transfers, according to CoinDesk’s report on the action. It was issued under Section 9714 of the Combating Russian Money Laundering Act and takes effect 30 days after publication in the Federal Register, CoinDesk reported.

How did FinCEN describe the alleged flows?

FinCEN cited transactions tied to Russian sanctions evasion, Iranian crypto exchanges, North Korean financial facilitators and cybercrime. CoinDesk reported that the agency identified nearly $1.5 billion linked to Russian sanctions evasion between May 2021 and May 2026, and about $1 billion in alleged direct transfers to more than 40 Iranian crypto exchanges.

FinCEN also identified $22 million linked to Iran’s central bank and the Islamic Revolutionary Guard Corps, according to CoinDesk. The agency’s announcement described the overall amount as at least $16 billion.

What has MEXC said, and what happens next?

MEXC said it was reviewing the order, continued to operate normally and had started an independent review of its anti-money laundering and sanctions controls, CoinDesk reported. U.S. financial institutions will face the transfer restrictions once the order takes effect after Federal Register publication.

Source material

• FinCEN announcement — fincen.gov
• CoinDesk’s report on the action — coindesk.com