CryptoSlate
MEXC recorded $126 million in net outflows over 24 hours after the Treasury's Financial Crimes Enforcement Network moved to cut the exchange off from the US financial system. FinCEN's Nov. 6 order accuses the exchange of facilitating roughly $16.7 billion in likely illicit transactions between May 2021 and May 2026, including sanctions evasion, terrorist financing and cybercrime. The exchange retained about $4.353 billion in tracked assets at the time of the outflows.
Why it matters
The order prohibits covered US financial institutions from sending or receiving funds involving MEXC, including cryptocurrency transfers, beginning 30 days after publication in the Federal Register. It has no scheduled expiration date. While it does not shut down MEXC internationally or freeze customer assets, it could disrupt the exchange's relationships with banks, liquidity providers and intermediaries operating under US jurisdiction.
FinCEN's 24-page order details direct exposure: nearly $1.5 billion tied to Russian sanctions evasion, including $232 million in direct dealings with sanctioned entities and $129 million involving Garantex. Investigators also identified over $1.87 billion in Iranian exposure, including $1 billion in direct transfers with more than 40 Iranian exchanges, and $22 million involving Iran's central bank and the IRGC's Qods Force. At least $1.99 billion involved illicit cyber actors, including $37.9 million in suspected ransomware payments.
Market impact
The enforcement lands on an exchange at peak scale. MEXC processed $1.069 trillion in trading volume in the third quarter of 2026, ranking fourth among exchanges tracked by TokenInsight with an 8.91% market share. It also holds the second-largest position in commodity perpetual futures at $86 billion, behind only Binance.
The US action follows MEXC's announced withdrawals from France, the Netherlands, Russia and Belarus amid mounting regulatory scrutiny. CEO Vugar Usi said the order does not freeze or seize assets and that users can trade normally, and the exchange has initiated an independent review of its AML and sanctions controls.
Frequently asked questions
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How much money left MEXC after the FinCEN action?
DeFiLlama data showed $126.03 million in net outflows over a 24-hour period spanning the announcement, while the exchange retained approximately $4.353 billion in tracked assets.
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Does the FinCEN order freeze MEXC customer assets?
No. CEO Vugar Usi stated that the order does not freeze or seize any assets held on MEXC and that users can trade normally. The restriction applies to transactions involving US financial institutions.
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What illicit activity did FinCEN attribute to MEXC?
FinCEN identified approximately $16.7 billion in likely illicit transactions between May 2021 and May 2026, including Russian sanctions evasion, Iranian-linked transfers and over $37.9 million in suspected ransomware payments.
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When do the US restrictions on MEXC take effect?
Covered US financial institutions are prohibited from sending or receiving funds involving MEXC, including cryptocurrency transfers, beginning 30 days after the order's publication in the Federal Register. It has no scheduled expiration date.
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How big is MEXC's trading business?
MEXC processed $1.069 trillion in trading volume during the third quarter of 2026, ranking fourth among exchanges in a TokenInsight study with an 8.91% market share, and held a 17.43% share in commodity perpetual futures.
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