FinCEN order targets MEXC over alleged $16.7B in illicit flows

The U.S. Treasury Department said on November 6 that the Financial Crimes Enforcement Network, or FinCEN, had issued an order targeting crypto exchange MEXC Global. The agency found MEXC to be a foreign financial institution of primary money-laundering concern in connection with Russian illicit finance.

The order prohibits covered U.S. financial institutions from processing certain transfers involving MEXC. Treasury characterized the action as cutting MEXC’s access to the U.S. financial system, while the order sets out the specific restriction on transmittals of funds involving the exchange.

Treasury said MEXC facilitated at least $16 billion in illicit transactions tied to sanctions evasion, cybercrime and other illicit activity involving Iran, North Korea and Russia. The underlying FinCEN order gives a more precise figure of $16.7 billion for funds connected to Russian illicit finance and other illicit activities between May 2021 and May 2026.

The measure has not yet taken effect. The posted order states that it was pending publication in the Federal Register and will become effective 30 days after that publication.

What FinCEN’s order does

FinCEN’s order imposes a special measure prohibiting covered U.S. financial institutions from transmitting funds involving MEXC Global. The agency’s formal finding is based on concerns about Russian illicit finance.

The action is a regulatory restriction directed at covered U.S. financial institutions. The available documents do not state that the measure was already in force on November 6; instead, they specify the 30-day timeline following Federal Register publication.

Alleged transaction flows

Treasury said the exchange facilitated at least $16 billion in illicit transactions connected to Iranian, North Korean and Russian sanctions evasion, cybercrime and other illicit activity. FinCEN’s order puts the amount at $16.7 billion and identifies the relevant period as May 2021 through May 2026.

The documents also identify nearly $1.5 billion in transactions linked to Russian sanctions evasion. That amount includes $232 million in direct transactions with entities sanctioned by the United States, European Union and United Kingdom.

• Treasury’s public figure: at least $16 billion in alleged illicit transactions.
• FinCEN order figure: $16.7 billion tied to Russian illicit finance and other illicit activities.
• Russian sanctions-evasion transactions identified by FinCEN: nearly $1.5 billion.
• Direct transactions with U.S., EU and UK-sanctioned entities: $232 million.

Wider exchange compliance scrutiny

The MEXC action adds to regulatory attention on how exchanges manage exposure to sanctions risks, illicit-finance activity and cross-border financial rules. The FinCEN order is specifically framed around the agency’s findings concerning Russian illicit finance, while Treasury’s announcement also cited alleged activity connected to Iran and North Korea.

Other recent developments have similarly focused on exchange oversight and offshore platforms. Readers can compare this action with a report on Thailand’s complaint against a Bitget operator and planned access block, as well as the CFTC chair’s call for offshore exchange registration following the Binance hack.

Continue reading: Thailand’s complaint against a Bitget operator and planned access block on BTCNews.

Continue reading: the CFTC chair’s call for offshore exchange registration following the Binance hack on BTCNews.

Sources

• U.S. Department of the Treasury: Operation Economic Outcast Severs MEXC Global’s Access to the U.S. Financial System
• Financial Crimes Enforcement Network: FinCEN Order 9714(a): Imposition of Special Measure Prohibiting the Transmittal of Funds Involving MEXC Global
• CoinDesk: U.S. Treasury moves to cut off crypto exchange MEXC over $16 billion in alleged illicit flows

Our creator. Creates amazing NFT collections! Support the editor - Bitcoin_Man(TON) / Bitcoin Man Stickers(TON) / BM Numbers (TON) / Comics Book (TON) / Bitcoin_Man (ETH)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)