US Treasury cuts off MEXC from financial system over $16B in illicit transactions

The U.S. Treasury has cut off crypto exchange MEXC from the U.S. financial system, citing roughly $16 billion in illicit transactions tied to the platform. The action bars U.S. banks and institutions from certain dealings with MEXC, effectively isolating the exchange from dollar-clearing rails. The move signals heightened regulatory scrutiny of offshore crypto venues and their anti-money-laundering controls. MEXC, known for listing a long tail of tokens and for zero-fee trading, now faces pressure on liquidity and U.S. counterparty access. Watch for customer withdrawals, trading volumes and token delistings at MEXC, plus whether other offshore exchanges face similar treatment.