- Binance will reject withdrawals to MEXC and review deposits linked to the exchange and its affiliates.
- FinCEN designated MEXC a primary money laundering concern and cited $16 billion in suspicious transactions.
- The U.S. order bars U.S. financial institutions from processing fund transfers involving MEXC.
MEXC transfers through Binance have been halted after the U.S. Treasury Department, through FinCEN, designated MEXC a primary money laundering concern. Binance said users should not send funds to, receive funds from, or otherwise transact through Binance in ways that involve MEXC, MEXC Global, affiliates, or related entities. The exchange said withdrawals to MEXC will be declined, while deposits from covered entities will be held for compliance review. The move followed FinCEN allegations that MEXC processed at least $16 billion in suspicious transactions between May 2021 and May 2026, including nearly $1.5 billion tied to Russian sanctions evasion.
Binance restricts MEXC transfers immediately
Binance said the restrictions took effect immediately. According to the exchange, any request to send funds from a Binance account to MEXC will be rejected. It also warned users not to send funds to, receive funds from, or otherwise route transactions through Binance if those transactions involve MEXC, MEXC Global, affiliates, or related entities.
The exchange listed 13 entities under the restriction, including MEXC Global Limited, MEXC Estonia OÜ, and MEXC Singapore Pte Ltd. Binance said deposits received from those entities will be temporarily withheld for compliance review. It also said some users could face further restrictions, including being offboarded from Binance, depending on the outcome of those checks.
FinCEN action prompts Binance restrictions
The change to MEXC transfers followed FinCEN’s decision last Friday to name MEXC a primary money laundering concern. The Treasury order was issued under the Combating Russian Money Laundering Act and bars U.S. financial institutions from processing fund transfers involving the exchange. According to the source report, the order will take effect 30 days after publication in the Federal Register.
FinCEN tied the action to Russian illicit finance and said MEXC’s anti-money laundering controls were severely deficient. Treasury also accused MEXC of facilitating at least $16 billion in illicit transactions tied to Iran, North Korea, and Russia. In its description of the case, Treasury said the exchange served as a channel for sanctions evasion and cybercrime.
Allegations behind MEXC transfers crackdown
FinCEN alleges MEXC processed at least $16 billion in suspicious transactions between May 2021 and May 2026. That total included nearly $1.5 billion in direct and indirect exposure to Russian sanctions evasion. Those claims formed the basis for the designation and help explain why major trading platforms are tightening how they handle MEXC transfers.
MEXC is still a large exchange by spot market activity. CoinMarketCap ranks it ninth among spot exchanges based on traffic, liquidity, and trading volume, with about $812.5 million in spot volume over the past 24 hours. Binance ranks first on the same measure, with about $6.4 billion, underscoring the practical impact that Binance’s restrictions on MEXC transfers could have for users.
Other exchanges respond on MEXC transfers
Binance is not the only exchange reacting to the FinCEN designation. OKX has also warned users against transferring funds to MEXC, according to Finance Magnates as cited in the source. That suggests the U.S. action is already influencing how other major exchanges approach MEXC transfers and related compliance risk.
For Binance users, the immediate effect is straightforward. Outgoing transfers to covered MEXC entities will not be processed, and inbound deposits connected to those entities may be delayed while they are reviewed. Binance also said additional account measures remain possible, including restrictions or offboarding, if compliance checks raise further concerns.
Conclusion
MEXC transfers through Binance were halted after FinCEN designated MEXC a primary money laundering concern and linked the exchange to at least $16 billion in suspicious transactions over five years. Binance said withdrawals to MEXC and related entities will be rejected, while deposits from those entities will be held for compliance review. The restrictions apply to 13 entities, and Binance warned that some users could face further account action, including offboarding. With the Treasury order set to bar U.S. financial institutions from processing fund transfers involving MEXC, the case is already shaping how major exchanges manage compliance risk tied to MEXC transfers.
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