Treasury Targets Crypto Exchange MEXC Over $16 Billion in Alleged Illicit Flows Linked to Iran and Russia

The U.S. Treasury Department has moved to sever cryptocurrency exchange MEXC from the American financial system, citing an estimated $16 billion in illicit transactions. The action, framed as part of Washington's pressure campaign against Iran, also highlights MEXC's alleged role in facilitating Russian illicit finance. Treasury officials say the exchange failed to implement adequate anti-money laundering controls, allowing sanctioned entities and criminal networks to move funds anonymously. The move follows a series of enforcement actions against crypto platforms accused of enabling sanctions evasion, including those tied to ransomware groups and darknet markets. By cutting off MEXC's access to U.S. correspondent banking and dollar clearing, the Treasury aims to choke off a major conduit for illicit flows. The order underscores the growing regulatory focus on offshore exchanges that operate with limited oversight, and it signals to the broader crypto industry that compliance with sanctions and AML rules is non-negotiable. As digital assets become more integrated into global finance, expect more aggressive enforcement against platforms that fail to police their networks.