FinCEN targets MEXC over alleged $16B in illicit crypto flows

FinCEN said the transactions occurred between May 2021 and May 2026 and involved sanctions evasion, cybercrime and other illegal financial activity. Treasury also cited about $1 billion in direct transactions involving more than 40 Iranian cryptocurrency exchanges, some already sanctioned, and $22 million involving Iran’s sanctioned central bank and the Islamic Revolutionary Guard Corps, including its Qods Force.

The order, issued under Section 9714 of the Combating Russian Money Laundering Act, takes effect 30 days after publication in the Federal Register. It restricts covered U.S. institutions from sending or receiving funds involving MEXC; it does not itself freeze customer assets or ban trading worldwide. FinCEN alleged that gaps in MEXC’s compliance controls allowed sanctioned actors to use the platform despite its anti-money-laundering policies and restrictions on customers in certain jurisdictions.

MEXC said it was reviewing the findings with its legal and compliance teams and had begun an independent review of its anti-money-laundering and sanctions procedures. The exchange said it was operating normally and user assets were secure. CEO Vugar Usi said deposits and withdrawals remained available despite higher withdrawal volumes. OKX CEO Star Xu, by contrast, advised users not to transfer funds directly from MEXC, warning that associated funds could be frozen and accounts investigated.

In a parallel measure, the Treasury’s Office of Foreign Assets Control sanctioned eight Canadian money services businesses over alleged transactions involving Iranian entities and sanctioned crypto exchanges. The named companies include Diverse Trade Inc., operating as Million Exchange, and 1380079 BC Limited, operating as Amin Exchange. Treasury said several businesses converted Iranian rials into cryptocurrency to move funds internationally through accounts linked to sanctioned Iranian exchanges and the IRGC. It also linked some firms to drug proceeds associated with Ryan Wedding, a former Olympic snowboarder accused of running an international narcotics network.

Canada’s FINTRAC said it coordinated with U.S. agencies on the designations and had revoked 161 money-services-business registrations since the start of 2026—more than in the previous three years combined. The agency also reported over C$198 million in administrative penalties against nine businesses during the past year and referred 28 suspected noncompliance cases to law enforcement. Under Canadian law, operating without valid registration can bring fines of up to C$5 million, up to five years in prison, or both, upon conviction on indictment.