US Treasury bars financial institutions from transferring funds to or from MEXC
The US Treasury’s financial-crime agency has ordered US financial institutions to stop transfers to and from cryptocurrency exchange MEXC Global. The prohibition takes effect 30 days after publication in the Federal Register. Treasury alleges that the platform facilitated at least 16 billion dollars in transactions linked to sanctions evasion, cybercrime and other illicit activity between May 2021 and May 2026.
Economics & Markets··Night
US institutions must stop MEXC transfers
The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN), its financial-crime agency, issued an order prohibiting US financial institutions from transferring funds to or from MEXC Global, a cryptocurrency exchange. The agency accused the platform of facilitating sanctions evasion and other illicit financial activity.[1], [2]
The prohibition begins 30 days after publication in the Federal Register, the US government’s official publication. It invokes legislation on Russian money laundering. Violations can carry civil or criminal penalties.[1]
Treasury alleges billions in illicit transactions
Treasury alleges that MEXC handled at least 16 billion dollars linked to sanctions evasion, cybercrime and other illicit activity between May 2021 and May of this year. The department attributes nearly 1.5 billion dollars to Russian sanctions evasion, including 232 million dollars in direct transactions with sanctioned entities.[1]
The department also alleges approximately 1 billion dollars in direct transactions with more than 40 Iranian crypto exchangers during that period.[1]
Existing reporting duties stay in force
Existing Bank Secrecy Act obligations, including suspicious-activity reporting, remain in place. The order also leaves sanctions administered by Treasury’s Office of Foreign Assets Control (OFAC) unchanged. Treasury acknowledged MEXC’s stated anti-money-laundering and customer-identification policies but alleged severe deficiencies in its controls.[1]
