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

Crypto exchange MEXC saw $126 million in net outflows as US regulators moved to sever its access to the American financial system.

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 represent 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.

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.

The company explained:

“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.

“A number of misconceptions are floating around,” Usi said, emphasizing that the restrictions apply to transactions involving US financial institutions rather than the exchange's entire global operation.

He added:

“The order itself does not freeze or seize any assets held on MEXC. Users can trade normally.”

Usi expressed confidence that the matter would be resolved and said the exchange would continue updating customers as discussions with regulators progress.

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, including transactions involving Russian sanctions evasion networks and Iranian-linked entities.

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.

The agency said MEXC continued transacting with both exchanges as recently as June 2026.

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.

Treasury Secretary Scott Bessent framed the enforcement action as part of Washington's broader effort to restrict financial channels used by sanctioned actors. He said:

“Either you support the Iranian regime, or you have access to the U.S. financial system.”

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.