MEXC Gets Cut Off From US Banks Over $16B In Iran And Russia Deals
MEXC, one of the world’s 20 biggest crypto exchanges, is being cut off from the US banking system after Treasury said it moved at least $16 billion tied to Iran, North Korea, Russia and cybercrime.
Key Takeaways
- FinCEN, Treasury’s financial crimes unit, ordered US banks to stop processing any fund transfers to or from MEXC Global
- Treasury says MEXC handled at least $16 billion in illicit funds between May 2021 and May 2026
- That includes about $1 billion with more than 40 Iranian crypto exchangers and around $22 million for Iran’s central bank and the IRGC
- MEXC says it is operating normally, user funds are safe and it has started an independent review of its controls
What Treasury Ordered
Treasury’s Financial Crimes Enforcement Network issued the order on Friday as part of Operation Economic Outcast, its campaign against Iran’s money channels, the department said. The order bars US financial institutions from sending funds to or receiving funds from MEXC Global, and takes effect 30 days after it is published in the Federal Register.
“Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system,” Treasury Secretary Scott Bessent said.
Treasury said MEXC, founded in 2018, processed more than $1 billion a day as of September and held about $5 billion in reserves. It lists more than 3,000 cryptocurrencies and tokenized assets.
Also Read: Iran Crypto Sanctions Hit 8 Canadian Firms Tied To Ex-Olympian Drug Lord
Where The $16 Billion Went
Treasury said MEXC claims to ban users from Iran and North Korea, but weak anti-money laundering controls let them through anyway. It said the exchange was still processing transactions with Garantex, the sanctioned Russian exchange, and its successor Grinex as recently as June 2026, more than four years after Garantex was blacklisted.
The department also tied MEXC to North Korean sanctions evasion, ransomware and scam payments, and darknet market activity.
What MEXC Says
MEXC said late Friday that it is aware of the order and is reviewing it with its legal and compliance teams. “MEXC is operating normally, and user assets remain secure,” the exchange said, adding that it intends to engage constructively with FinCEN.
MEXC executive Vugar Usi argued that the order only restricts fund transfers between MEXC Global and US financial institutions, and does not freeze or seize any assets held on the platform. “Users can trade normally,” he wrote.
In a later update on Saturday, Usi said deposits and withdrawals were still working, but admitted the exchange had seen “an increase in withdrawal volumes.” He said blockchain analytics firm Elliptic had moved MEXC back into its standard exchange category, and that MEXC has started an independent review of its anti-money laundering and sanctions controls.
What To Watch Next
The clock now runs on the 30-day window before the order takes effect. The key signals are whether withdrawals from MEXC keep rising, whether other compliance firms and banking partners follow Elliptic’s lead or cut ties, and whether MEXC can strike a deal with FinCEN before the ban bites.
Read Next: Iran Crypto Sanctions Hit 8 Canadian Firms Tied To Ex-Olympian Drug Lord
