US Treasury moves to cut MEXC off from US finance, alleging $16B in illicit flows
In brief
- Treasury order would bar US financial institutions from processing MEXC Global transfers.
- FinCEN alleged MEXC facilitated at least $16 billion in illicit transactions.
- Eight Canadian money-service firms sanctioned over alleged dealings with Iranian entities.
- Binance France accounts will close Dec. 31, according to French media reports.
What FinCEN alleged
The Treasury's Financial Crimes Enforcement Network (FinCEN) alleged that MEXC handled transactions involving sanctioned groups in Iran, Russia and North Korea between May 2021 and May 2026. Those included about $1.5 billion in transactions linked to Russian sanctions evasion, according to the official press release as reported by Cointelegraph.
The order won't take effect right away, though: it kicks in 30 days after publication in the Federal Register.
MEXC isn't a small venue. DefiLlama data put the exchange's total assets at about $4.48 billion as of Friday. MEXC hadn't responded to Cointelegraph's request for comment by the time of publication.
Eight Canadian firms sanctioned
The MEXC action is part of Operation Economic Outcast, a Treasury campaign launched in August to cut off financial entities that help Iran evade sanctions. Separately, the Treasury imposed sanctions on eight Canadian money-service companies it said had done business with sanctioned Iranian entities.
A Treasury statement released Friday said those companies helped exchange Iranian rials and other currencies for digital assets (which enabled international transactions). The Treasury also said they handled transactions with sanctioned Iranian digital asset exchanges and with addresses linked to Iran's Islamic Revolutionary Guard Corps. The sanctions are meant to isolate the firms from the dollar-based financial system, and they're the latest in a series of Treasury moves against companies outside the US.
US Treasury Secretary Scott Bessent said, as quoted by Cointelegraph:
“Treasury will continue to sever the Iranian regime’s economic lifelines and thwart its desperate attempts to circumvent U.S. sanctions using digital assets.”
Binance France winds down
In Europe, it's a different kind of exit. Media outlets including Cryptoast and Crypto Briefing reported that Binance France is closing its operations in the country, citing emails sent to customers in early November. According to those reports, all Binance France accounts will be closed on Dec. 31.
Accounts that still hold a balance from Nov. 29 will pay a monthly maintenance fee of 0.025% of the balance (with a minimum of 10 USDC). Binance told users they must complete withdrawals by Nov. 29 to avoid the fees.
Frequently asked questions
What did the US Treasury accuse MEXC of?
The Treasury accused MEXC Global of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity. FinCEN alleged the exchange handled transactions involving sanctioned groups in Iran, Russia and North Korea between May 2021 and May 2026.
When does the Treasury order against MEXC take effect?
The order takes effect 30 days after publication in the Federal Register. Once it's in force, it effectively bars US financial institutions from processing money transfers involving MEXC.
When will Binance France accounts close?
Cryptoast and Crypto Briefing reported that all Binance France accounts will close on Dec. 31. Accounts still holding a balance from Nov. 29 will pay a monthly fee of 0.025% of the balance, with a minimum of 10 USDC.
