Detection of Billions in Transactions Linked to Iran and Russia
U.S. officials have reported significant flaws in MEXC Global’s systems for anti-money laundering and verifying customer identities, which permitted sanctioned individuals and organizations to operate on the platform.
Data from the ministry indicates that over a five-year span, the exchange engaged in close to $1 billion in direct transactions with more than 40 cryptocurrency platforms based in Iran. Allegations also suggest that it facilitated around $22 million in transactions associated with the Central Bank of Iran, the Iranian Revolutionary Guard, and the Quds Force.
Transactions related to Russia also played a crucial role in the investigation. Evidence revealed that MEXC Global handled roughly $1.5 billion in transactions aimed at dodging sanctions imposed on Russia, with $232 million of this directly involving sanctioned entities.
Officials further noted that the exchange would continue to engage in transactions with Garantex and its successor Grinex, both of which are on the sanctions list, at least until June 2026.
U.S. Treasury Secretary Scott Bessent emphasized that financial institutions cannot support the Iranian regime while accessing the U.S. financial system, reiterating that efforts to bypass sanctions using digital assets will be met with strong opposition.
U.S. Financial Institutions Prohibited from Transacting with MEXC
FinCEN announced a ban that prevents U.S. financial institutions from processing transfers to or from MEXC Global. Institutions that fail to comply with this ruling may face legal or criminal repercussions.
This regulation is set to take effect 30 days following its publication in the U.S. Federal Register.
Established in 2018, MEXC Global was estimated by the Treasury Department to have a daily trading volume exceeding $1 billion and around $5 billion in reserves by September 2026. The platform provides trading options for over 3,000 cryptocurrencies and tokenized assets.
*This is not investment advice.