US Treasury cuts crypto exchange MEXC off from the US financial system

What was decided. FinCEN issued the order under section 9714(a) of the Combating Russian Money Laundering Act. It is not an OFAC sanctions listing but a separate measure: US financial institutions may not process any transmittal of funds from or to MEXC Global. Violations can bring civil or criminal penalties. The step is part of Treasury's Operation Economic Outcast, a campaign against Iranian sanctions evasion.

What the exchange is accused of. Treasury says that between May 2021 and May 2026 MEXC handled at least $16 billion tied to sanctions evasion, cybercrime and other illicit activity. Nearly $1.5 billion of that is linked to Russian sanctions evasion, including $232 million in direct transactions with US, EU and UK sanctioned entities. The agency says the exchange was still dealing with sanctioned Garantex and its successor Grinex as recently as June 2026, and processed almost $200 million tied to the A7A5 stablecoin. About $1 billion moved with Iranian crypto exchangers, Treasury says, and about $22 million benefited Iran's central bank and the IRGC.

The exchange itself. According to Treasury, MEXC was founded in 2018 and as of September 2026 processed more than $1 billion a day and held about $5 billion in reserves. Its rules bar users from Iran and North Korea, but the agency calls its anti-money laundering controls severely deficient. Cointelegraph asked MEXC for comment and had no reply by publication.

What comes next. The order takes effect 30 days after it appears in the Federal Register, and no publication date has been announced. It does not change banks' suspicious activity reporting duties or OFAC sanctions.

Confirmed facts

• On November 6, 2026 FinCEN issued an order barring US financial institutions from any transmittal of funds from or to MEXC Global.^[1][2]
• The order was issued under section 9714(a) of the Combating Russian Money Laundering Act and takes effect 30 days after Federal Register publication.^[1][2]
• Treasury says that from May 2021 to May 2026 MEXC handled at least $16 billion tied to sanctions evasion, cybercrime and other illicit activity.^[1][3]
• Nearly $1.5 billion is linked to Russian sanctions evasion, Treasury says, including $232 million in direct transactions with sanctioned entities.^[1][4]
• Treasury says MEXC was still dealing with Garantex and Grinex as recently as June 2026.^[1][4]
• According to Treasury, MEXC processed more than $1 billion a day and held about $5 billion in reserves as of September 2026.^[1][4]
• The action is part of Treasury's Operation Economic Outcast.^[1][3]
• MEXC had not replied to Cointelegraph's request for comment at publication.^[3]

Implications

• ConfirmedUS financial institutions will not be able to process transfers involving MEXC once the order takes effect.
• Our readingPayment partners that use US dollars may stop handling deposits and withdrawals for the exchange. This is our inference.
• Our readingOther large offshore exchanges may tighten customer checks to avoid a similar order. This is our inference.

Still unknown

• When the order will be published in the Federal Register
• How MEXC will respond and whether its payment partners change
• How stablecoin issuers and banks outside the US will react

Who it affects

United States, Global. MEXC users and anyone who moves money in and out of offshore crypto exchanges

Sources

1. U.S. Department of the Treasury: Operation Economic Outcast Severs MEXC Global's Access to the U.S. Financial System November 6, 2026 · official
2. FinCEN: Imposition of Special Measure Prohibiting the Transmittals of Funds Involving MEXC Global November 6, 2026 · official
3. Cointelegraph: US Treasury cuts off MEXC over alleged $16B in illicit transactions November 6, 2026 · media
4. Decrypt: Treasury Cuts Crypto Exchange MEXC Off From US Financial System November 6, 2026 · media