Binance Restricts Transfers to MEXC Over Money Laundering Concerns

TL;DR

• Binance has blocked direct and indirect transfers involving MEXC and 12 related entities following a FinCEN designation.
• The US Treasury alleges that MEXC facilitated at least $16 billion in illicit transactions linked to sanctions evasion and cybercrime.
• MEXC says its services remain operational and has launched an independent review of its anti-money laundering controls.
  

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Binance has introduced restrictions on transactions involving MEXC Global and its affiliated companies after US authorities identified the cryptocurrency exchange as a primary money laundering concern. The decision adds pressure on one of the industry’s major trading platforms and raises new questions about how regulatory actions affect liquidity and access between centralized exchanges.

The announcement, published on November 10, follows an order issued by the Financial Crimes Enforcement Network (FinCEN), a division of the US Treasury Department, on November 6. Binance said it would no longer process transfers involving the entities covered by the designation.

Binance Blocks Transfers And Tightens Compliance Controls

Under the new restrictions, Binance users cannot directly or indirectly send funds to MEXC, receive funds from the exchange, or conduct transactions involving its affiliated companies through Binance.

The list includes MEXC Global Limited, MEXC Estonia OÜ, MEXC Singapore Pte Ltd, GIDA Technology AG, MEXC Global Foundation Ltd, and several other related entities.

Binance confirmed that outgoing transfer requests involving these companies will be rejected. Incoming deposits originating from the listed entities will be temporarily withheld for compliance reviews. The exchange also warned that affected accounts could face additional restrictions, including the termination of services under its terms of use.

The move reflects the growing importance of compliance systems for major crypto platforms. Exchanges must monitor transaction flows, identify potentially restricted counterparties, and maintain procedures that allow them to respond to regulatory orders without disrupting unrelated customer activity.

FinCEN Raises $16 Billion In Transaction Concerns

The US Treasury’s action against MEXC is based on allegations involving at least $16 billion in transactions connected to illicit financial activity between May 2021 and May 2026. Authorities linked the alleged flows to sanctions evasion involving Russia, Iran, and North Korea, as well as cybercrime.

FinCEN said weaknesses in MEXC’s anti-money laundering controls allowed transactions involving sanctioned actors. Its order seeks to prevent covered US financial institutions from processing certain transfers involving the exchange. The measure is subject to a 30-day implementation period following publication in the Federal Register.

MEXC responded on November 7, saying it was reviewing the order with its legal and compliance teams. The company also stated that its trading, deposit, and withdrawal services remained operational and that user assets were secure. It announced an independent review of its anti-money laundering and sanctions controls.