Binance MEXC transfers are blocked after the US Treasury accused MEXC of moving at least $16 billion in illicit funds. Treasury has not shown how it reached that number.
Binance users linked to MEXC may see their accounts restricted during review. MEXC says it runs normally and user assets are safe.
Why an Exchange Outside the US Is Following a US Order
The Financial Crimes Enforcement Network (FinCEN), Treasury’s money laundering unit, named MEXC a “primary money laundering concern” on November 6. The order bars US financial institutions from sending funds to or from MEXC.
The order binds only US institutions, but FinCEN wrote that MEXC may reach US dollars indirectly through foreign financial institutions.
Binance acted anyway, saying in a post that it will reject transfers to MEXC and review other linked activity.
Binance pleaded guilty to US charges in 2023, including Iran sanctions violations, and paid about $4.3 billion.
What Treasury Says MEXC Did
Treasury tied nearly $1.5 billion to Russian sanctions evasion and about $1 billion to Iranian exchanges since May 2021, as the US ban on MEXC detailed.
MEXC also dealt with Garantex, a sanctioned Russian exchange, and its successor Grinex as recently as June, Treasury said. FinCEN first used this power in 2023 against Bitzlato, another Russia-linked exchange.
Why ZachXBT Wants Treasury to Show Its Data
ZachXBT, an investigator who traces crypto hacks, agreed MEXC’s customer checks have long been loose. However, he disputes the total.
Treasury’s release says at least $16 billion. The order says $16.7 billion, citing blockchain analysis and non-public information, with no breakdown that adds up.
“But the $16B illicit amount being alleged by FinCEN seems overstated to me so I’d like to see the data and comps,” the investigator noted.
He said he could flag hundreds of millions to billions in illicit funds at any large exchange. MEXC processed over $1 billion a day as of September, Treasury said.
He named KuCoin as a worse offender left unsanctioned. KuCoin admitted a US charge in January 2025 and paid over $297 million. Binance received $676 million from Shelbit, an Iran-linked Dubai exchange, Reuters reported in August.
The ban takes effect 30 days after the order appears in the Federal Register. Treasury has not said whether it will release the data ZachXBT requested.
Source: BeInCrypto