What exactly did MEXC do? Why is the US Treasury Department taking such drastic action against it? The US believes that MEXC has become a transit point for funds from sanctioned entities, money laundering networks, and cybercriminals, and that its own anti-money laundering mechanisms have failed to effectively stop these funds. FinCEN disclosed that from May 2021 to May 2026, at least $16.7 billion in suspected illicit funds flowed through MEXC. This involves four main issues: Russian Sanctions Circumvention: Nearly $1.5 billion is related to circumventing Russian sanctions, of which $232 million involves entities directly sanctioned by the US, EU, and UK. Most seriously, more than four years after Garantex was sanctioned by the US, MEXC continued transactions with Garantex and its successor, Grinex, until June 2026. Iranian Funds Network: Approximately $1.87 billion is related to Iran, of which over $1 billion involves direct transactions between MEXC and more than 40 Iranian cryptocurrency exchanges; approximately $22 million involves the Central Bank of Iran, the Islamic Revolutionary Guard Corps, and its Quds Force. North Korea Sanctions Circumvention: MEXC helped Sim Hyon Sop, a North Korean money launderer sanctioned by the US, receive approximately $350,000, even though he was already on the sanctions list. Cybercrime: Approximately $1.99 billion was involved in cybercrime activities, including fraud, ransomware, and dark web transactions. Between 2022 and 2024 alone, MEXC received over $37.9 million in suspected ransomware payments. The real tactic the US used this time was to prohibit US financial institutions from processing any fund transfers involving MEXC, including cryptocurrency transfers.