MEXC Responds to U.S. Treasury Order to Sever Ties with Financial System
Cryptocurrency exchange MEXC issued a statement on November 7, Taiwan time, addressing an order from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to cut off its access to the U.S. financial system. MEXC asserted that its platform operations remain normal, user assets are secure, and it has initiated an independent review of its anti-money laundering (AML) and sanctions compliance controls. The statement did not address FinCEN’s accusation of $16.7 billion in illicit financial flows.
MEXC released its statement at 8 a.m. Taiwan time on November 7, responding to the U.S. order to halt financial flows. The order was issued by FinCEN on November 6, Eastern Time. MEXC acknowledged the order on its official X account, stating it is being carefully evaluated by its legal and compliance teams. The statement emphasized that the platform is operating normally and user assets are secure.
MEXC also announced it has begun an independent review of its internal AML and sanctions compliance measures. The statement did not specify which external firm is conducting the review or provide a timeline for its completion.
In its statement, MEXC said the company “takes external concerns seriously” and intends to engage in constructive communication with FinCEN and other relevant global regulatory bodies. The exchange concluded by stating it will continue to monitor the situation and provide updates through official channels.
The four-paragraph statement did not directly address the specific allegations outlined by the Treasury Department. The department accused MEXC of facilitating at least $16 billion in illicit financial flows between May 2021 and May 2026, averaging over $3 billion annually. These alleged activities involved sanctions evasion related to Russia, Iran, and North Korea, as well as cybercrime. The statement did not deny these figures or provide itemized rebuttals.
FinCEN issued the order under Section 9714(a) of the Anti-Money Laundering Act, prohibiting U.S. financial institutions from processing any funds transmitted to or from MEXC Global. While the Treasury Department’s press release broadly stated “at least $16 billion,” the order itself cited $16.7 billion. Details regarding the allegations involving Russia, Iran, and North Korea can be found in previous reports.
The order is set to take effect 30 days after its publication in the Federal Register and has no termination date. As of the morning of November 7, Taiwan time, the order had not yet appeared on the Federal Register website, meaning its exact effective date remains undetermined.
Treasury Secretary Scott Bessent stated in a press release, “Financial institutions cannot have it both ways; they must either support the Iranian regime or use the U.S. financial system.” The Treasury Department also pointed out that despite MEXC’s public claims of having AML and customer identification verification policies, its controls suffered from “severe deficiencies.” The independent review announced by MEXC specifically covers these AML and sanctions compliance areas.
MEXC’s user agreement already lists the United States as a region where services are not provided, alongside countries like Canada, Iran, and North Korea. FinCEN’s order targets U.S. financial institutions, prohibiting them from handling payments for MEXC.
How is MEXC responding to FinCEN’s order to cut off financial flows?
MEXC stated via X on November 7, Taiwan time, that it is evaluating the order with its legal and compliance teams, its platform operations are normal, user assets are secure, and it has initiated an independent review of its AML and sanctions compliance. However, it did not address the $16.7 billion accusation.
When will FinCEN’s order against MEXC take effect?
The order, issued under Section 9714(a) of the Anti-Money Laundering Act, will take effect 30 days after its publication in the Federal Register and has no termination date. Once effective, U.S. financial institutions will be prohibited from processing funds transmitted to or from MEXC Global. As of the morning of November 7, it had not yet been published.
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