MEXC insists business is normal, and traders are shrugging. But a 30-day clock is about to start, and the Garantex collapse shows how fast an exchange can unravel once its partners decide to walk away.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The Financial Crimes Enforcement Network (FinCEN) at the U.S. Treasury Department ordered U.S. financial institutions to cut off MEXC Global, an offshore cryptocurrency exchange. According to the MEXC FinCEN order, the exchange facilitated at least $16 billion in illicit transactions from May 2021 to May 2026. This included nearly $1.5 billion related to evading Russian sanctions and around $1 billion linked to over 40 Iranian money changers.
In a statement on X, MEXC said it is still operating normally, and traders have barely reacted so far. So, what does the MEXC FinCEN order mean for the cryptocurrencies held on the exchange, and could the situation change?
What FinCEN’s MEXC Order Blocks and What It Leaves Alone
FinCEN’s action is a final order under the Combating Russian Money Laundering Act, labeling MEXC as a “primary money laundering concern” in relation to Russian illicit finance. In plain terms, U.S. banks and payment processors must stop all transfers to and from MEXC, including cryptocurrency transactions, and failure to comply may lead to civil or criminal penalties.
This ban takes effect 30 days after the order is published in the Federal Register, which is the government’s official daily record. The exact publication date is still pending. The order does not specify an end date, although FinCEN reserves the right to grant exemptions if necessary.
This order directly affects U.S. financial institutions but leaves customer wallets on MEXC intact. It is also a FinCEN funds-transfer ban and is distinct from sanctions imposed by the Office of Foreign Assets Control (OFAC), which would block assets outright. The Treasury has not provided any information regarding withdrawal processes.
TRON’s Exposure to a Related Sanctions Action Looks Small
On the same day, the Treasury’s OFAC sanctioned eight Canada-based money services businesses for exchanging Iranian rials for digital assets, which included entries linked to TRON addresses. TRON (CRYPTO: TRX) is well known for facilitating inexpensive stablecoin transfers and ranks as the 8th-largest cryptocurrency, with a market cap of around $30.4 billion. The ties to these Canadian money changers are relatively minor given the size of the TRON network.
TRX holders remain unfazed. The coin trades at $0.32, up 0.5% over the past 24 hours and 4.2% over the past week, though it has declined 3.86% over the past month. The bigger risk for TRON seems to be reputational, as the Treasury continues to uncover illicit activity involving its network.
Garantex and Huione Show How Cut-Offs Play Out
Typically, private companies move before regulators finish acting. For example, in March 2025, Tether, the issuer of a popular stablecoin, froze Tether (CRYPTO: USDT) tokens associated with Garantex, leading the Russia-linked exchange to shut down as U.S., German, and Finnish authorities took action and locked customers out.
Conversely, Huione Group disintegrated more slowly. After Cambodia’s central bank revoked Huione Pay’s license, FinCEN published its final rule to cut Huione off from U.S. banks in the Federal Register in October 2025.
The FinCEN order against MEXC is less drastic than the Garantex case. No announcements of domain seizures, criminal charges, or frozen stablecoins mean MEXC faces a banking challenge. Its future will depend on whether its business partners choose to distance themselves from the exchange.
Is Your Crypto Safe on MEXC?
Currently, balances on MEXC appear accessible as long as withdrawals continue to function. The bigger concern is the risk of partners exiting the exchange. U.S. users trying to cash out through American banks or payment apps could face failed transfers once the ban takes effect, creating a 30-day deadline for action. Users located outside the U.S. could also be affected, particularly through stablecoin issuers and market makers.
Those holding tokens that primarily trade on MEXC face the highest risk, as prices may drop if market makers withdraw their quotes. The FinCEN countdown will begin once the order is officially published in the Federal Register. If Tether freezes addresses linked to MEXC or if MEXC halts withdrawals before that deadline, we could witness a scenario reminiscent of Garantex, and MEXC’s claim of operating normally would no longer hold true.
Contact [email protected] for any questions or corrections.
Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
