The U.S. Treasury Department has taken action against the crypto exchange MEXC Global, cutting it off from the American financial system. The move comes after accusations that MEXC facilitated at least $16 billion in illicit transactions linked to Iran, North Korea, and Russia. The Treasury's Financial Crimes Enforcement Network issued an order on Friday, stating that MEXC, one of the world's 20 largest crypto exchanges, has been a major conduit for sanctions evasion and cybercrime.
The action is part of a broader initiative called Operation Economic Outcast, aimed at curbing financial activities that undermine U.S. sanctions. The Treasury's order highlights MEXC's role in enabling transactions that circumvent international sanctions, posing a significant threat to global financial security.
This development underscores the increasing scrutiny faced by crypto exchanges, particularly those with operations spanning multiple jurisdictions. The Treasury's move could have far-reaching implications for MEXC's operations and its ability to serve users in the U.S. and other regulated markets.