Binance has stopped processing cryptocurrency transfers involving MEXC Global and its affiliated entities after US regulators identified the exchange as a primary money laundering concern over $16 billion in alleged illicit transactions.
Summary
- Binance will reject withdrawals to MEXC and temporarily withhold incoming deposits from the exchange and its affiliates for compliance reviews.
- The restrictions follow FinCEN’s designation of MEXC as a primary money laundering concern over $16 billion in alleged illicit transactions between May 2021 and May 2026.
- Binance warned that users receiving funds from the affected entities could face account restrictions or termination of services under its terms of use.
- MEXC has disputed the regulatory allegations and maintained that its trading services, deposits and withdrawals remain operational.
In a November 10 announcement, Binance instructed customers not to send or receive funds directly or indirectly through its platform involving MEXC and 12 other named entities or categories associated with the exchange.
Under the new restrictions, withdrawals from Binance wallets to the listed entities will be rejected, while incoming deposits originating from them will be temporarily withheld for compliance checks.
Customers whose deposits are flagged could face restrictions on their Binance accounts during the review. Depending on the outcome, Binance said it may impose further limitations or terminate their access to its services under its terms of use.
The notice covers MEXC Global Limited, MEXC Estonia OÜ, GIDA Technology AG, MXC Global Ltd, MEXC Global Foundation Ltd, MEXC Singapore Pte Ltd and MEXC (Comoros) Ltd, alongside other names and affiliates identified in the announcement.
Binance has not specified how long the compliance reviews could take or provided a separate timetable for releasing affected deposits.
Binance restrictions follow FinCEN’s action against MEXC
The decision follows a November 6 order from the US Treasury’s Financial Crimes Enforcement Network, which accused MEXC of facilitating transactions connected to sanctions evasion, cybercrime and other illegal financial activity.
According to FinCEN, at least $16 billion passed through the exchange between May 2021 and May 2026 in transactions linked to illicit activity involving Russia, Iran and North Korea.
The agency alleged that MEXC maintained inadequate anti-money laundering controls despite publicly claiming to restrict customers from sanctioned jurisdictions.
US authorities identified approximately $1 billion in direct transfers involving more than 40 Iranian cryptocurrency exchanges, some of which were already subject to sanctions.
Another $22 million allegedly involved Iran’s central bank and the Islamic Revolutionary Guard Corps, including its Qods Force.
The Treasury Department said MEXC processed more than $1 billion in daily transactions and held approximately $5 billion in reserves as of September 2026.
FinCEN issued its order under Section 9714 of the Combating Russian Money Laundering Act, which permits restrictions on foreign financial institutions linked to Russian illicit finance.
The measure prohibits covered US financial institutions from transmitting funds to or from MEXC once it takes effect, 30 days after publication in the Federal Register.
Binance’s November 10 notice sets out its own transfer restrictions without specifying a separate implementation date.
Other exchanges have tightened MEXC transfer controls
Binance is not the first major cryptocurrency exchange to respond to the US regulatory action.
As crypto.news previously reported, OKX chief executive Star Xu warned customers against transferring cryptocurrency directly from MEXC following FinCEN’s announcement.
Xu said deposits associated with affected platforms could be frozen and customers might face further investigations as part of enhanced compliance checks.
MEXC responded to the allegations on November 7, maintaining that its trading services remained operational and customer assets were secure.
In its official statement, the exchange said it was reviewing FinCEN’s findings with its legal and compliance teams and had started an independent examination of its anti-money laundering and sanctions controls.
MEXC chief executive Vugar Usi subsequently acknowledged higher withdrawal volumes but said deposits and withdrawals were continuing normally.
MEXC had already announced restrictions in Russia and Belarus
The latest developments follow a series of compliance-related changes at MEXC in recent months.
In October, the exchange announced plans to discontinue services for customers in Russia and Belarus, with affected users receiving individual instructions for closing trading positions and withdrawing their assets.
MEXC did not announce a common withdrawal deadline for those customers, leaving the applicable timelines to individual account notifications.
Earlier, in May, the exchange restricted selected futures trading pairs for customers in Russia, Ukraine, Armenia and Belarus, preventing them from opening new positions in the affected contracts.
In July, MEXC appointed Robert MacDonald as chief compliance officer and announced a collaboration with LSEG Risk Intelligence to use World-Check screening tools in its compliance operations.
The exchange’s October service announcement did not identify a particular regulatory order as the reason for its withdrawal from Russia and Belarus.
