Binance MEXC Transfers Halt as FinCEN Flags $16B in Flows

Editor’s take (Keshav Aggarwal): I see Binance blocking MEXC transfers as good for industry standards if MEXC is enabling illicit activity, and I’d advise small investors to avoid MEXC because it allows trading without KYC and won’t take responsibility. Binance returning funds after its hack makes me trust it more.

Binance has stopped processing Binance MEXC transfers and halted transactions involving 12 other named entities, days after the U.S. Treasury’s Financial Crimes Enforcement Network named MEXC a primary money laundering concern. The restriction, announced on Tuesday, November 10, follows FinCEN’s November 6 order. U.Today described Binance as the first crypto exchange to take action in accordance with FinCEN’s rule, while OKX CEO Star Xu warned customers against transferring cryptocurrency directly from MEXC, according to crypto.news.

“Effective immediately, users should not send funds to, receive funds from, or otherwise transact through Binance involving MEXC, MEXC Global, MEXC affiliates or related entities,” Binance said in its announcement.

The notice covers 13 named entities and categories, including MEXC Global Limited, MEXC Estonia OÜ, MEXC Singapore Pte Ltd, MEXC Global Foundation Ltd, GIDA Technology AG, MXC Global Ltd and MEXC (Comoros) Ltd, crypto.news reported. Withdrawals from Binance to those entities will be rejected. Deposits arriving from them will be temporarily withheld for compliance review, and affected users could face further limits — including being offboarded from Binance — depending on the outcome. Binance has not said how long those reviews will take.

What the FinCEN order means for Binance MEXC transfers

The label is not a criminal charge and does not seize assets. It is a special-measures authority, here issued under Section 9714 of the Combating Russian Money Laundering Act, which lets FinCEN restrict foreign financial institutions tied to Russian illicit finance. The practical effect is a correspondent cutoff: once the order takes effect, covered U.S. financial institutions are barred from transmitting funds to or from MEXC. That means Binance MEXC transfers through U.S. institutions would be blocked, but the rule is not yet in force.

Timing matters. The order becomes effective 30 days after publication in the Federal Register, and the sources reviewed for this article did not specify a publication date — meaning the U.S.-side prohibition is not yet in force. BeInCrypto noted the order binds only U.S. institutions, but FinCEN wrote that MEXC may still reach U.S. dollars indirectly through foreign financial institutions. FinCEN first used this authority in 2023 against Bitzlato, another Russia-linked exchange.

Why Binance moved first and the disputed $16 billion Binance MEXC transfers allegation

Binance has its own history with U.S. enforcement: it pleaded guilty to U.S. charges in 2023, including Iran sanctions violations, and paid about $4.3 billion, BeInCrypto reported. Continuing to clear flows for an exchange under a Treasury special measure would put that settlement posture at risk, which helps explain why Binance acted before the rule is formally operative.

It is not alone. OKX chief executive Star Xu warned customers against transferring crypto directly from MEXC, saying deposits linked to affected platforms could be frozen and customers might face additional investigation during enhanced compliance checks, according to crypto.news.

FinCEN alleges MEXC processed at least $16 billion in suspicious transactions between May 2021 and May 2026, including nearly $1.5 billion in direct and indirect exposure to Russian sanctions evasion. The agency also cited roughly $1 billion in transfers involving more than 40 Iranian exchanges, and about $22 million connected to Iran’s central bank and the Islamic Revolutionary Guard Corps, including its Qods Force, per crypto.news.

The number is already contested. BeInCrypto reported that Treasury’s public release says “at least $16 billion,” while the order itself says $16.7 billion, citing blockchain analysis and non-public information with no breakdown that adds up.

“But the $16B illicit amount being alleged by FinCEN seems overstated to me so I’d like to see the data and comps.” — ZachXBT

The investigator said he could flag hundreds of millions to billions in illicit funds at any large exchange, and named KuCoin as a worse offender that was left unsanctioned; KuCoin admitted a U.S. charge in January 2025 and paid over $297 million. Binance itself received $676 million from Shelbit, an Iran-linked Dubai exchange, Reuters reported in August. Treasury has not said whether it will release the data ZachXBT requested.

Market data, MEXC status, and what to watch next in Binance MEXC transfers

MEXC ranks ninth among spot exchanges on CoinMarketCap, which scores platforms on traffic, liquidity and trading volume, with about $812.5 million in spot volume over the past 24 hours. Binance ranks first with about $6.4 billion, Decrypt reported. Treasury said MEXC processed more than $1 billion in daily transactions and held approximately $5 billion in reserves as of September 2026.

MEXC said on November 7 that trading remained operational and customer assets were secure, and that it had begun an independent examination of its anti-money laundering and sanctions controls. Chief executive Vugar Usi acknowledged higher withdrawal volumes but said deposits and withdrawals were continuing normally. Binance has not specified how long compliance reviews could take or provided a separate timetable for releasing affected deposits.

• The Federal Register. Publication starts the 30-day clock. Until then, the U.S. prohibition is pending, not active.
• Whether others follow. Binance and OKX have acted; watch payment processors, custodians and other large venues for matching restrictions on Binance MEXC transfers and MEXC affiliates.
• Whether Treasury publishes its numbers. The gap between the $16 billion release figure and the $16.7 billion order figure is the crux of the dispute.
• MEXC’s own cleanup. The exchange announced plans in October to exit Russia and Belarus, appointed a chief compliance officer in July and is now running an independent controls review.

FinCEN’s action is a Treasury finding, not a court judgment, and the headline dollar figure remains an allegation drawn partly on non-public data. The harder, more durable consequence may prove to be the compliance perimeter now being built around MEXC by its peers.

Frequently asked questions

Is Binance blocking all transfers to and from MEXC?

Binance said withdrawals to MEXC and 12 other named entities will be rejected, and deposits originating from them will be temporarily withheld for compliance review. It has not specified how long those reviews will take or ruled out further account restrictions.

When does the FinCEN order take effect?

The order takes effect 30 days after it is published in the Federal Register. The sources reviewed did not specify a publication date, so the U.S.-side prohibition is not yet in force.

Has the $16 billion figure been independently verified?

No. FinCEN cites blockchain analysis and non-public information, and the order's $16.7 billion figure has no published breakdown. Investigator ZachXBT said the $16 billion allegation seems overstated and asked for the underlying data and comparisons.

Sources: Decrypt, crypto.news, U.Today, BeInCrypto