US Treasury cuts crypto exchange MEXC off from US financial system

The US Treasury has cut the crypto exchange MEXC off from the US financial system. According to Decrypt, the order was issued by FinCEN as part of Operation Economic Outcast. It bars US financial institutions from any transfers to or from MEXC.

Treasury says MEXC facilitated $16 billion in illicit finance. Decrypt reports that Treasury tied this to Iran, North Korea and Russia. The Block describes the $16 billion as allegedly connected to transactions, and its headline names the same three countries, but its excerpt focuses on Iran. CoinDesk reports that Treasury presented the move as part of its campaign against Iran, while the order itself rests on MEXC's alleged role in Russian illicit finance. The sources therefore differ on which countries sit at the centre of the case.

The $16 billion figure is an allegation from the US government. None of the reports includes a response from MEXC. The reports also do not say how long the restriction will last, or what will happen to customer funds held on the platform.

The order is aimed at US banks and other regulated financial institutions. It does not, on the reports available, describe penalties for individual users.