US Treasury Halts MEXC Transactions Over Iran, Russia, North Korea Links

Treasury Moves to Sever MEXC Global from U.S. Financial System Over Alleged Illicit Transactions

The U.S. Treasury Department is taking action to cut cryptocurrency exchange MEXC Global off from the American financial system, citing at least $16 billion in illicit transactions linked to sanctions evasion, cybercrime, and other illegal activities involving Iran, North Korea, and Russia.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order designating MEXC Global as a major money laundering concern under the Combating Russian Money Laundering Act. This designation effectively prohibits U.S. financial institutions from processing any fund transfers involving the exchange, including cryptocurrency movements, thereby severing its access to the U.S. financial infrastructure.

According to the Treasury, MEXC allegedly facilitated at least $16 billion in illicit funds between May 2021 and May 2026. These transactions are said to have involved sanctions evasion, cybercrime, ransomware, scams, and activity on darknet markets.

Treasury Secretary Scott Bessent stated, “Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system.”

FinCEN reported that nearly $1.5 billion in transactions linked to Russia passed through MEXC, including $232 million in direct dealings with entities sanctioned by the U.S., European Union, and United Kingdom. The exchange also allegedly handled transactions involving the sanctioned Russian exchange Garantex and its successor, Grinex, as recently as June 2026. Garantex was initially sanctioned in April 2022.

Further investigations by FinCEN uncovered at least $26 million connected to Russia’s A7 network, accused of aiding individuals in evading sanctions. An additional $200 million was linked to the A7A5 stablecoin.

The alleged illicit activity was not confined to Russia. Between May 2021 and May 2026, MEXC reportedly processed approximately $1 billion in direct transactions with over 40 Iranian cryptocurrency exchanges. FinCEN also identified about $22 million in transactions linked to Iran’s sanctioned central bank, the Islamic Revolutionary Guard Corps, and its Qods Force.

In response to the FinCEN order, MEXC stated on X (formerly Twitter) that it is aware of the action and is reviewing it closely with its legal and compliance teams. The exchange emphasized that it takes the concerns seriously and intends to cooperate with FinCEN, along with other global regulators and authorities.

MEXC cofounder Vugar Usi sought to reassure the community, stating, “I want to reassure our community that MEXC is operating normally, and user assets remain secure.” The exchange has initiated an independent review of its anti-money laundering (AML) and sanctions controls and plans to provide further updates through its official channels.

The enforcement order will take effect 30 days after its publication in the Federal Register. Any violations could lead to significant civil or criminal penalties for MEXC.