US Treasury moves to sever crypto exchange MEXC over illicit flows

The United States Department of the Treasury moved on Friday to cut cryptocurrency exchange MEXC Global off from the American financial system. Decrypt, Bitcoin Magazine, Cointelegraph, and The Block reported that the Treasury Department's Financial Crimes Enforcement Network, known as FinCEN, issued an order prohibiting domestic financial institutions from processing funds transfers involving the platform. The government accused MEXC of facilitating at least 16 billion dollars in illicit transactions. [1][2][3][5]

According to Decrypt, Bitcoin Magazine, and Cointelegraph, federal authorities asserted that MEXC served as a conduit for sanctions evasion and cybercrime connected to Iran, North Korea, and Russia. Decrypt reported that the action forms part of a wider enforcement effort designated Operation Economic Outcast, which bars American institutions from conducting any transfers to or from the venue. Decrypt also noted that MEXC ranks among the 20 largest crypto exchanges globally. [1][2][3][5]

The mandate was issued as a final order under section 9714(a), according to Bitcoin Magazine. Bitcoin Magazine and The Defiant reported that the transfer ban will officially take effect 30 days after its publication in the Federal Register. [2][4]

Following the order, MEXC stated that asset withdrawals remain ongoing, according to The Defiant. The Defiant also reported that the platform has initiated an independent review of its anti-money laundering and sanctions compliance controls. [4]