US Treasury orders institutions to cut ties with crypto exchange MEXC

The Financial Crimes Enforcement Network, a bureau of the United States Department of the Treasury, issued a final order on Friday prohibiting American financial institutions from processing transfers involving cryptocurrency exchange MEXC Global. Bitcoin Magazine Markets, Decrypt, Cointelegraph, and The Block all reported that the order targets MEXC over allegations that it facilitated at least $16 billion in illicit transactions linked to sanctions evasion, cybercrime, and illicit activity involving Iran, North Korea, and Russia. Decrypt noted that the action is part of a broader government initiative designated Operation Economic Outcast. [1][2][3][4]

FinCEN issued the final regulatory action under section 9714(a), according to Bitcoin Magazine Markets. Bitcoin Magazine Markets and Decrypt reported that the order finds MEXC to be a primary money laundering concern, while Decrypt noted that the platform ranks among the world's 20 largest cryptocurrency exchanges. As FTMQ Crypto reported earlier, the enforcement action severs the platform from the domestic banking network. [1][2][12]

The operational restriction is scheduled to take effect 30 days following its official publication in the Federal Register, according to Bitcoin Magazine Markets and The Defiant. In response to the order, The Defiant reported that MEXC stated customer withdrawals continue as normal while the platform has initiated an independent review of its anti-money laundering and sanctions controls. [1][5]