Key Takeaways
Transfers from Binance to MEXC-linked addresses will probably be rejected.Incoming deposits face compliance opinions and potential account closures.FinCEN’s order takes impact 30 days after Federal Register publication.
Binance Rejects MEXC Transfers and Withholds Deposits
Binance mentioned Nov. 10 that it was limiting transactions involving MEXC following the Monetary Crimes Enforcement Community’s (FinCEN) designation of the change as a main cash laundering concern. Its rapid transaction restrictions lined MEXC, MEXC International, associates, and associated entities. The change suggested customers in opposition to sending, receiving, or in any other case transacting by means of Binance involving these companies.
The corporate acknowledged:
“Requests to ship funds to MEXC addresses will probably be rejected.”
Underneath its MEXC deposit restrictions, incoming funds from the listed companies could be quickly withheld for compliance overview. Account holders may face additional limitations, together with removing from the platform.
Among the many lined entities had been MEXC International Restricted, MEXC Singapore Pte Ltd, and GIDA Know-how AG. FinCEN recognized GIDA as a Swiss entity amongst MEXC’s present or former associates. Binance’s listing additionally included different company entities, buying and selling names, and associates throughout a number of jurisdictions.
FinCEN Alleges $16 Billion in Illicit Transactions
The U.S. Treasury Division disclosed the motion in opposition to MEXC International on Nov. 6 as a part of Operation Financial Outcast, a U.S. marketing campaign to disrupt the Iranian authorities’s monetary networks. Officers alleged that the change facilitated no less than $16 billion in illicit transactions between Might 2021 and Might 2026. Treasury linked the exercise to Iranian, North Korean, and Russian sanctions evasion, in addition to cybercrime.
These alleged illicit flows included almost $1.5 billion related to Russian sanctions evasion, in keeping with Treasury. That determine included $232 million in direct transactions with entities sanctioned by the USA, the European Union, and the UK. Officers additionally cited dealings with Russia-based sanctioned change Garantex and its successor, crypto change Grinex.
FinCEN issued its order beneath the Combating Russian Cash Laundering Act, which authorizes Treasury to limit transactions involving international monetary establishments linked to Russian illicit finance. The measure prohibits U.S. monetary establishments from transmitting funds to or from MEXC International. It takes impact 30 days after publication within the Federal Register.
Clients Report Frozen Funds as Exchanges Tighten Controls
Some MEXC customers reported frozen deposits at OKX after transferring what they described as their very own belongings between exchanges. Founder and CEO Star Xu mentioned OKX had strengthened its controls earlier than the regulatory deadline and handled FinCEN particular measures with warning much like sanctions. He warned that related funds could possibly be frozen and accounts investigated.
MEXC CEO Vugar Usi famous that the corporate had begun an impartial overview of its anti-money laundering and sanctions controls. He added that it meant to have interaction constructively with FinCEN. In its response to FinCEN’s order on Nov. 7, MEXC mentioned it was working usually, and consumer belongings remained safe.
In February, Binance had outlined its broader compliance monitoring program, stating that it proactively eliminated high-risk accounts. The corporate reported processing greater than 71,000 regulation enforcement requests globally in 2025. It additionally described investments of a whole lot of thousands and thousands of {dollars} in transaction monitoring and counter-terrorist financing infrastructure.
Past direct transfers into buying and selling accounts, Binance’s discover lined oblique dealings involving the listed companies. Such exercise may breach its phrases of use and set off short-term restrictions on impacted funds and accounts throughout overview. The corporate directed affected customers to contact Binance Assist by means of official channels.
