Key highlights:
- Binance has stopped transfers to and from MEXC and its related companies. Outgoing transfers get rejected, and incoming funds are held for extra checks.
- US financial authorities say MEXC handled at least $16.7 billion in transactions tied to evading sanctions and other illegal activity from May 2021 to May 2026.
- These new rules could make it harder for MEXC users to move funds between exchanges. OKX and other trading platforms have also warned users about sending money to MEXC.
- MEXC is now looking into the US Treasury’s order with its legal team and reviewing how it handles money laundering checks.
Pressure from regulators is growing for crypto exchanges, and now Binance is reacting to the US Treasury’s actions against MEXC. The Financial Crimes Enforcement Network (FinCEN) has called out MEXC as a major concern for money laundering, claiming it’s tied to dodging sanctions, hacking, and other illegal financial activity. While the US order is aimed at American financial firms, Binance decided to set its own restrictions on dealings with MEXC and its associated companies.
People are now worried that when one crypto exchange is targeted by regulators, everyone who uses other exchanges can get affected too. With Binance limiting transfers and OKX warning people, MEXC is under more pressure about its links with other platforms. MEXC is now talking to regulators and checking over its compliance system as questions keep coming up about the charges and the evidence behind them.
Binance Introduces Restrictions on MEXC-Related Transactions
On November 10, Binance said it would immediately stop handling transactions involving MEXC, MEXC Global, and any related companies. So, if you try to send money from Binance to MEXC, your transfer won’t go through. If you send money from a MEXC company to Binance, the funds will be held for compliance checks.
This affects 13 companies, including MEXC Global Limited, MEXC Estonia OÜ, and MEXC Singapore Pte Ltd. Binance told its users not to send or receive funds through MEXC, directly or indirectly.
Binance also warned that accounts linked to these kinds of transactions could be checked more closely or face temporary freezes. Anyone breaking these rules might lose access to Binance services.
All of this follows FinCEN’s move to flag MEXC on November 6. The order was published on November 10 and will take effect on December 10, 2026. It stops US financial companies from working with MEXC. While the federal measure does not directly impose the same restriction on foreign exchanges, Binance has chosen to act ahead of the order’s effective date.
FinCEN Raises Concerns Over Billions in Transactions
The US Treasury says MEXC processed at least $16.7 billion in transactions linked to illegal activity between May 2021 and May 2026. The deals supposedly involve people and groups linked to Russia, Iran, and North Korea trying to avoid sanctions, plus darknet sales and hacking.
FinCEN also said there were about $1 billion in direct transactions between MEXC and more than 40 Iranian crypto exchanges during this time.
On top of that, investigators found about $22 million in trades involving Iran’s central bank (which is under sanctions) and the Islamic Revolutionary Guard Corps. Treasury officials mentioned another $1.5 billion in deals tied to Russian sanctions evasion.
However, the figures have attracted questions from blockchain investigator ZachXBT. He says the $16 billion figure seems exaggerated and has asked for clearer data and comparisons. He also questioned why other big exchanges accused of similar problems haven’t gotten the same treatment.
MEXC Responds as Other Exchanges Raise Warnings
MEXC says it’s closely reviewing the Treasury’s order with its legal and compliance teams. The company has also started an independent check on its money laundering and sanctions screening.
MEXC CEO Vugar Usi said on November 10 they’ve started talking to FinCEN, getting help from a top US law firm. Usi said FinCEN confirmed receiving a letter from MEXC on November 9, US time. He also said the exchange’s deposits, withdrawals, and trading are all running normally.
Usi noted that improving compliance has been a priority since he stepped in, hiring experts and tightening their internal checks. Still, he didn’t directly answer ZachXBT’s questions about how the $16.7 billion figure was reached.
The fallout goes beyond just Binance. OKX CEO Star Xu told users not to send money to MEXC, warning that funds could get frozen and accounts might be investigated.
MEXC’s position in the market adds another dimension to the situation. The exchange ranks ninth in CoinMarketCap’s spot exchange rankings, with approximately $812.5 million in spot trading volume over the past 24 hours. Binance, by comparison, recorded around $6.4 billion during the same period.
If more exchanges join in and limit access to MEXC, people could have a lot more trouble moving money between trading platforms. Those who usually move funds through Binance could get stuck with held deposits, blocked transfers, or frozen accounts. It just shows how one rule aimed at US banks can ripple through to global crypto exchanges and affect users everywhere.
