[Wu Blockchain News] ZachXBT Questions FinCEN’s $16B MEXC Allegation, Raises Concerns Over Regulatory Overreach

Onchain investigator ZachXBT challenged FinCEN’s claim that MEXC processed $16 billion in illicit transactions, arguing the estimate appears overstated and lacks supporting data or comparisons with peer exchanges. He noted that hundreds of millions to billions in illicit flows could likely be found at other major venues, raising concerns about U.S. regulatory overreach toward offshore platforms including MEXC and HTX. ZachXBT also questioned why offshore exchanges with minimal U.S. presence moved quickly to restrict MEXC-related transfers, while conceding MEXC has historically had lax AML/KYC practices. The dispute matters because FinCEN’s figure underpins enforcement pressure on offshore crypto trading venues and could shape how other exchanges handle counterparty exposure. What to watch next is whether FinCEN publishes the methodology behind the $16 billion estimate and whether other exchanges disclose their own illicit-activity benchmarks for comparison.