[Wu Blockchain News] US Treasury Moves to Cut MEXC Global Off From US Financial System Over $16B in Illicit Transactions

FinCEN ordered US financial institutions to stop processing fund transfers to and from MEXC Global, citing at least $16 billion in transactions tied to illicit activity between May 2021 and May 2026. The Treasury unit said the exchange’s AML controls were severely deficient and flagged nearly $1.5 billion linked to Russian sanctions evasion and roughly $1 billion in direct dealings with Iranian crypto exchanges. The prohibition takes effect 30 days after publication in the Federal Register. The action matters because it effectively severs MEXC from the US banking system and raises compliance risk for counterparties settling through US rails. Watch whether MEXC tightens AML procedures or adjusts its banking and stablecoin settlement arrangements before the effective date.