Binance Blocks MEXC Transfers after US Treasury Alleges $16.7B in Illicit Flows

Binance has started blocking transfers involving crypto exchange MEXC after the US Treasury accused the platform of processing at least $16.7 billion in illicit funds.

“Binance is applying enhanced compliance measures following FinCEN’s designation of MEXC as a Primary Money Laundering Concern,” the exchange wrote on X.

The Financial Crimes Enforcement Network (FinCEN), a Treasury bureau responsible for combating money laundering, designated MEXC a “primary money laundering concern” on Nov. 6 under Section 9714 of the Combating Money Laundering Act.

The order prohibits US financial institutions from processing transactions involving MEXC. Although the restriction does not directly apply to foreign exchanges, Binance said it would reject transfers to MEXC and review other related account activity.

Binance users with connections to MEXC could therefore face additional checks or account restrictions while the exchange reviews transactions.

The Treasury’s case covers transactions linked to Russian, Iranian and North Korean sanctions evasion, as well as ransomware, darknet markets and other cybercrime. It said MEXC facilitated around $1 billion in direct transactions with more than 40 identified Iranian crypto exchanges between May 2021 and May 2026.

The agency also identified approximately $22 million in transactions involving Iran’s sanctioned central bank and the Islamic Revolutionary Guard Corps.

MEXC said that it was reviewing the order with its legal and compliance teams. It also said it had started an independent review of its anti-money laundering and sanctions controls.

However, blockchain investigator ZachXBT questioned the scale of Treasury’s allegations, saying the $16 billion figure appeared overstated.

He also pointed to other large exchanges that have faced allegations involving illicit transactions without receiving the same treatment.

In 2023, Binance pleaded guilty to US anti-money laundering and sanctions violations, agreeing to pay more than $4.3 billion in penalties.