MEXC sees $126 million outflows as US targets exchange over $16.7 billion in suspected illicit transactions

The withdrawals coincided with a Nov. 6 enforcement action by the Treasury's Financial Crimes Enforcement Network (FinCEN), which accused the exchange of facilitating $16.7 billion in transactions linked to sanctions evasion, terrorist financing and cybercrime. Data from DeFiLlama showed $126.03 million in net outflows over a 24-hour period spanning the announcement, while the exchange retained approximately $4.353 billion in tracked assets.

This represents net movements through monitored wallets and do not establish that all withdrawals occurred after the announcement or indicate whether the exchange has sufficient assets to meet its customer liabilities.

Exchange reassures users

MEXC has moved to contain concerns about its financial position, insisting that customer funds remain secure and its trading, deposit and withdrawal services are operating normally. In an official statement, the exchange said it was reviewing the Treasury order with its legal and compliance teams and had initiated an independent examination of its anti-money laundering and sanctions controls.

We take the concerns raised seriously and intend to engage constructively with FinCEN, as well as other relevant regulators and competent authorities worldwide.

CEO Vugar Usi separately sought to clarify the implications of the order after concerns spread among users.

Billions in illicit transactions

The response followed a sweeping investigation that identified significant deficiencies in MEXC's compliance controls despite its stated policies against servicing customers in sanctioned jurisdictions. In its 24-page order, FinCEN said MEXC facilitated approximately $16.7 billion in likely illicit activity between May 2021 and May 2026.

Nearly $1.5 billion involved direct or indirect exposure to Russian sanctions evasion, including $232 million in direct dealings with sanctioned entities. FinCEN specifically identified approximately $129 million in transactions involving Garantex and another $4.1 million involving Grinex after the Russian exchanges were sanctioned by Western authorities.

Investigators also identified more than $1.87 billion in transactions with Iranian exposure, including approximately $1 billion in direct transfers involving more than 40 Iranian crypto exchanges. Another $22 million involved Iran's central bank and the Islamic Revolutionary Guard Corps, including its Qods Force.

Separately, the agency identified at least $1.99 billion involving illicit cyber actors, including more than $37.9 million in suspected ransomware payments.

Trading business at risk

The US enforcement action comes as MEXC retreats from several international markets amid mounting regulatory scrutiny. The exchange has announced withdrawals from France, the Netherlands, Russia and Belarus as part of its efforts to address compliance concerns.

A TokenInsight report showed that MEXC processed $1.069 trillion in trading volume during the third quarter of 2026, ranking fourth among exchanges covered by the study. Its overall market share reached 8.91%, up 0.38 percentage points from the previous quarter.

MEXC has also gained ground in derivatives linked to traditional financial assets, processing $86 billion in commodity perpetual futures during the quarter, giving it a 17.43% market share, second only to Binance.

The order prohibits covered US financial institutions from sending or receiving funds involving MEXC, including cryptocurrency transfers, beginning 30 days after its publication in the Federal Register. While it doesn't shut down MEXC internationally, it could complicate the exchange's relationships with banks and financial intermediaries operating within the US regulatory system.