The US Treasury issued an order on Friday to cut cryptocurrency exchange MEXC Global off from the US financial system, alleging that it facilitated at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity, according to Cointelegraph.
The order would bar US financial institutions from processing money transfers involving MEXC. It is scheduled to take effect 30 days after publication in the Federal Register—not immediately upon announcement.
Treasury’s allegations
The Financial Crimes Enforcement Network (FinCEN) asserted that MEXC handled transactions involving sanctioned groups in Iran, Russia and North Korea between May 2021 and May 2026. According to the Treasury’s official press release, that included around $1.5 billion in transactions linked to Russian sanctions evasion.
Treasury Secretary Scott Bessent framed the action as a choice between supporting the Iranian regime and retaining access to the US financial system. He said Treasury would continue efforts to sever Iran’s economic lifelines and prevent sanctions circumvention using digital assets.
The action forms part of Operation Economic Outcast, a Treasury campaign launched in August to cut off financial entities that help Iran evade sanctions.
Assets reported, but customer obligations remain unaddressed
DefiLlama listed approximately $4.48 billion in total assets at the exchange as of Friday, according to the report. That asset figure does not establish MEXC’s customer liabilities, solvency or the legal protections available to customers.
The reported restriction concerns transfers involving MEXC through US financial institutions. The source does not specify how customer withdrawals or other exchange services would be affected.
Cointelegraph said it contacted MEXC for comment but had not received a response by publication. The allegations therefore remain attributed to US authorities, without an exchange response in the supplied report.
Original publication: November 7, 2026, at 05:05:25 UTC+08:00.
Source: Cointelegraph’s original article.