Key Takeaways
- • FinCEN issued an order on November 6 prohibiting U.S. financial institutions from any transmittal of funds to or from MEXC Global, effectively cutting the exchange off from the U.S. financial system, with the order scheduled for Federal Register publication on November 10 and taking effect 30 days later.
- • Treasury said MEXC facilitated at least $16 billion of transactions tied to Iranian, North Korean and Russian sanctions evasion and cybercrime between May 2021 and May 2026, including about $232 million of direct transactions with U.S., EU and UK sanctioned entities.
- • MEXC reportedly processed more than $1 billion a day as of September 2026 and held about $5 billion in reserves, making the scale of the cutoff significant for crypto counterparties.
- • OFAC designated eight Canada-based money services businesses under Executive Order 13902 for operating in Iran's digital asset sector, with Treasury saying several also laundered funds for sanctioned Canadian drug trafficker Ryan Wedding.
- • Funds, prime brokers and crypto counterparties must identify and wind down U.S.-regulated exposure to MEXC flows by the effective date and update screening programs for the eight newly designated entities.
Summary
Treasury's findings include nearly $1.5 billion of transactions linked to Russian sanctions evasion, of which $232 million were direct transactions with U.S., EU and UK-sanctioned entities. Treasury also cited continued dealings with the sanctioned Russian exchange Garantex and its successor Grinex as recently as June 2026. Regarding Iran, Treasury said MEXC sent or received about $1 billion in direct transactions with more than 40 identified Iranian crypto exchangers and facilitated about $22 million of transactions for the Central Bank of Iran and the Islamic Revolutionary Guard Corps and its Qods Force. According to Treasury, MEXC processed more than $1 billion a day as of September 2026 and held about $5 billion in reserves.
On the same day, the Office of Foreign Assets Control (OFAC) designated eight Canada-based money services businesses under Executive Order 13902 for operating in Iran's digital asset sector. The entities are Million Exchange, 1380079 BC Limited and its affiliate Top PC Technician Inc (both doing business as Amin Exchange), NIA Nations Currency, Farah Exchange, CCC Inc, B Galaxy Inc (Cryptoyal) and Darvish Exchange. Treasury said several of these firms also laundered funds for sanctioned Canadian drug trafficker Ryan Wedding. The action was coordinated with FinCEN, Canada's FINTRAC and the Drug Enforcement Administration.
In a November 7 statement, MEXC said it is reviewing the order with its legal and compliance teams, that it is "operating normally" and that user assets "remain secure." The exchange said it intends to engage with FinCEN and other regulators and has begun an independent review of its anti-money-laundering and sanctions controls.
For funds, prime brokers and crypto counterparties, the practical deadline is the effective date. Because the order covers transmittals of convertible virtual currency as well as fiat, U.S.-regulated firms with direct or indirect exposure to MEXC flows will need to identify and wind down those pathways, and screening programs should be updated to capture the eight newly designated Canadian entities.
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