Binance Halts Transfers Linked to MEXC Global Following US Money Laundering Action

Exchange rejects outgoing withdrawals and flags deposits after federal regulators designate rival a primary laundering concern

Binance has barred all transactions to and from rival cryptocurrency exchange MEXC Global, warning that outgoing withdrawal requests will be rejected and incoming deposits frozen for compliance review.

The restriction took effect immediately following a U.S. regulatory enforcement action designating Seychelles-based MEXC a primary money laundering concern over allegations involving more than $16 billion in illicit transactions. Under the policy, Binance stated that any direct or indirect transfers linked to MEXC, its affiliates or related entities could trigger account investigations and constitute a breach of its terms of use.

“Requests to send funds to MEXC addresses will be rejected,” Binance said in a statement published on social media platform X. “Any direct or indirect transaction involving these entities will be subject to further review. Impacted funds and accounts may be temporarily restricted while the review is ongoing, and such activity may constitute a breach of Binance Terms of Use.”

The policy by Binance, the largest cryptocurrency exchange in the world by trading volume, marks a formal operational blockade that sharply escalates market isolation around MEXC.

Escalating Platform Quarantines

The measure follows an advisory issued on Nov. 7 by OKX founder Star Xu, who urged customers to avoid direct transfers between MEXC and OKX due to automated compliance holds. While OKX warned traders that incoming transfers could face manual freezes, Binance expanded the restriction to reject all outgoing transactions to MEXC addresses at the protocol level. (Read More: OKX Warns Against MEXC Transfers as CEO Defends Solvency After US Action)

MEXC Chief Executive Officer Vugar Usi defended platform operations on Nov. 7, stating that customer withdrawals remained solvent, orderly and fully functional despite more than $120 million in tracked net outflows following the U.S. announcement. Usi said MEXC initiated an independent review of its compliance controls and planned to engage directly with U.S. authorities.

FinCEN Money Laundering Allegations

The industrywide clampdown stems from a Nov. 6 order issued by the U.S. Treasury Department’s Financial Crimes Enforcement Network under Section 9714(a) of the Combating Russian Money Laundering Act. FinCEN alleged that MEXC facilitated illicit finance between May 2021 and May 2026, including nearly $1.5 billion tied to Russian sanctions evasion and approximately $1 billion routed to Iranian exchange desks.

Once published in the Federal Register, the pending FinCEN rule will prohibit covered U.S. financial institutions from transacting with MEXC. While the measure does not place MEXC on the Office of Foreign Assets Control sanctions list or order a legal seizure of assets, global platforms have accelerated independent compliance restrictions to isolate MEXC-associated liquidity.

Southeast Asian Enforcement History

Both Binance and MEXC have previously faced scrutiny from financial regulators across Southeast Asia. In the Philippines, the Securities and Exchange Commission issued public advisories against both offshore platforms for operating without local licenses, a regulatory push that resulted in the removal of the MEXC application from domestic mobile application stores earlier in 2026.

Disclosure: AI is used to assist in developing this article.

This article is published on BitPinas: Binance Halts Transfers Linked to MEXC Global Following US Money Laundering Action

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