Binance Blocks MEXC Transfers as FinCEN Alleges $16B in Illicit Flows

Binance has blocked cryptocurrency transfers involving MEXC and its affiliates after US regulators linked the exchange to at least $16 billion in alleged illicit transactions. In a notice dated November 10, 2026, Binance said it would reject withdrawals to the affected entities and temporarily hold incoming deposits pending compliance checks.

The Financial Crimes Enforcement Network (FinCEN), the US Treasury's financial intelligence unit, issued its order on November 6, 2026, designating MEXC a primary money laundering concern. The agency said at least $16 billion in transactions flowed through the exchange between May 2021 and May 2026 in connection with illicit activity tied to Russia, Iran and North Korea.

Which entities does Binance's ban cover?

Binance instructed customers not to send or receive funds, directly or indirectly, involving MEXC or the associated entities listed in its notice. The named entities include:

• MEXC Global Limited
• MEXC Estonia OÜ
• GIDA Technology AG
• MXC Global Ltd
• MEXC Global Foundation Ltd
• MEXC Singapore Pte Ltd
• MEXC (Comoros) Ltd

The restrictions treat outgoing and incoming transfers differently. Withdrawals to affected entities are rejected outright; incoming deposits are held for review. Binance warned that customers receiving funds from the listed entities face possible account restrictions during compliance checks, and said it could impose additional limits or terminate access to its services under its terms of use.

What does FinCEN allege?

FinCEN's order accuses MEXC of facilitating sanctions evasion, cybercrime and other unlawful financial conduct. The agency also charged that MEXC's anti-money laundering safeguards were inadequate, despite the platform's public claims that it blocked users from sanctioned countries.

US officials said roughly $1 billion moved directly through more than 40 Iranian crypto exchanges, several already sanctioned. A further $22 million was reportedly connected to Iran's central bank and the Islamic Revolutionary Guard Corps, including its Qods Force.

Treasury data shows the scale of the platform at stake: MEXC handled daily transaction volumes exceeding $1 billion and reported roughly $5 billion in reserves as of September 2026.

The order invokes Section 9714 of the Combating Russian Money Laundering Act, which permits limits on foreign financial institutions tied to illicit Russian finance. It bars covered US financial institutions from sending or receiving funds involving MEXC once it takes effect 30 days after publication in the Federal Register.

How has MEXC responded?

MEXC rejected the accusations in a November 7 statement, saying its legal and compliance departments were examining FinCEN's conclusions. The exchange also launched an independent review of its anti-money laundering and sanctions compliance measures.

MEXC chief executive Vugar Usi confirmed that withdrawal activity had increased following the order. The pressure is spreading across the market: OKX chief executive Star Xu cautioned users against transferring crypto directly from MEXC, noting that deposits tied to the affected exchanges might be frozen and that users could face additional scrutiny as compliance reviews tighten.

Did MEXC see this coming?

The exchange had already been retrenching. In October 2026, MEXC disclosed it would stop serving customers in Russia and Belarus, publishing separate guidance on closing positions and withdrawing funds. In May 2026, it restricted selected futures pairs for customers in Russia, Ukraine, Armenia and Belarus, blocking new positions in the affected contracts.

MEXC also moved to strengthen its compliance bench, hiring Robert MacDonald as chief compliance officer in July 2026 and announcing a partnership with LSEG Risk Intelligence to deploy World-Check screening tools.

Those measures did not satisfy FinCEN. Once the order takes effect in the Federal Register, covered US financial institutions will have a hard legal cutoff on MEXC-related flows, and the exchanges that continue serving them will carry the compliance risk. </body_markdown>: "