Treasury Moves to Cut Off Crypto Exchange MEXC Global from U.S. Financial System
The U.S. Treasury Department has taken steps to sever cryptocurrency exchange MEXC Global from the American financial system, alleging it facilitated at least $16 billion in illicit transactions linked to Iran, North Korea, and Russia.
In an order issued Friday through its Financial Crimes Enforcement Network (FinCEN), the Treasury Department stated that MEXC, recognized as one of the world’s 20 largest crypto exchanges, has served as a significant conduit for sanctions evasion and cybercrime.
This action, part of a broader initiative known as Operation Economic Outcast, prohibits U.S. financial institutions from processing any fund transfers to or from the exchange. The measures will take effect 30 days after their publication 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 in a statement. He vowed to continue cutting off the regime’s “economic lifelines” and its attempts to circumvent sanctions using digital assets.
Founded in 2018, MEXC processes over $1 billion in daily transactions, holds approximately $5 billion in reserves, and offers more than 3,000 tokens, according to FinCEN. Between May 2021 and May 2026, the platform handled at least $16 billion connected to illicit activities. This includes nearly $1.5 billion tied to Russian sanctions evasion, with $232 million in direct transactions involving sanctioned entities. FinCEN has designated MEXC as a “primary money laundering concern” in relation to Russian illicit finance.
Despite publicly asserting anti-money-laundering controls and prohibiting users in countries like Iran and North Korea, MEXC’s compliance efforts were marked by “severe deficiencies,” FinCEN reported.
The exchange was reportedly still conducting transactions with the sanctioned Russian exchange Garantex and its successor, Grinex, as recently as June 2026, more than four years after Garantex was initially designated. MEXC also processed approximately $200 million linked to the A7A5 stablecoin and about $22 million benefiting Iran’s central bank and its Islamic Revolutionary Guard Corps.
These connections place MEXC directly within a wide-ranging sanctions-evasion network that the Treasury Department has been systematically dismantling.
Last month, the department designated Russia’s A7 Network as a transnational criminal organization and proposed cutting off its front companies from U.S. finance. This move flagged over $179 billion in transactions through its ruble-backed A7A5 token, much of which was routed via Garantex and Grinex.
The same campaign has extended to Iran’s crypto sector. The Treasury Department has secured broad authority to sanction any individuals operating within this space and has blacklisted the Iranian exchange Nobitex for its role in funneling cryptocurrency to the IRGC.
The current order utilizes a provision from the Combating Russian Money Laundering Act, rather than a standard sanctions designation. This approach has become an increasingly favored tool for FinCEN to disrupt crypto infrastructure operating outside the traditional correspondent banking system.
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