Treasury moves to cut off crypto exchange MEXC from U.S. financial system over alleged $16 billion in illicit transactions

The U.S. Treasury Department moved to cut off cryptocurrency exchange MEXC from the American financial system over allegations the platform processed $16 billion in illicit transactions linked to Iran, North Korea and Russia. The action targets MEXC Global for alleged sanctions violations.

The Treasury decision blocks MEXC from accessing U.S. financial infrastructure and conducting transactions with American counterparties. The enforcement measure represents one of the largest actions against a cryptocurrency exchange based on alleged illicit transaction volume.

The alleged $16 billion in flows involve transactions connected to sanctioned countries including Iran, North Korea and Russia. The Treasury did not specify the time period over which the transactions allegedly occurred or detail the nature of the illicit activity.

In response to the Treasury action, digital asset company NatGold Digital announced it would immediately delist its NATG token from MEXC. The move reflects the immediate market consequences for platforms cut off from the U.S. financial system.