Binance Halts MEXC Transfers as FinCEN Cuts Exchange Off From US Financial System
Binance has stopped processing transactions involving MEXC and its affiliates after FinCEN designated the exchange a primary money laundering concern.
Binance has stopped processing transactions involving MEXC and its affiliates, days after the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) designated the exchange a primary money laundering concern. The action follows allegations that MEXC processed at least $16 billion in suspicious transactions over five years, including about $1.5 billion linked to Russian sanctions evasion.
Binance's Response
Effective immediately, Binance will reject any requests to send funds to MEXC, MEXC Global, or related entities. Deposits received from these platforms will be temporarily withheld for compliance review, with users potentially facing further restrictions including being offboarded from Binance.
Users should not send funds to, receive funds from, or otherwise transact through Binance involving MEXC, MEXC Global, MEXC affiliates or related entities.
FinCEN's Action
FinCEN named MEXC a primary money laundering concern last Friday under the Combating Russian Money Laundering Act, which bars U.S. financial institutions from processing fund transfers involving the exchange. The order takes effect 30 days after its publication in the Federal Register.
MEXC ranks ninth among spot exchanges on CoinMarketCap with about $812.5 million in spot volume over the past 24 hours, while Binance ranks first with about $6.4 billion. OKX has also warned its users against transferring funds to MEXC following the designation.
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