- ZachXBT questioned FinCEN’s $16 billion estimate of alleged illicit MEXC transactions, requesting supporting data and comparisons with other exchanges.
- Binance restricted deposits, withdrawals and other transactions involving MEXC following FinCEN’s Primary Money Laundering Concern designation.
- ZachXBT raised concerns about potential regulatory overreach, questioning why offshore exchanges with limited U.S. presence restricted MEXC-related transfers.
Onchain investigator ZachXBT has challenged FinCEN’s estimate of $16 billion in alleged illicit MEXC transactions, demanding supporting data and comparisons. He acknowledged MEXC’s historically relaxed anti-money laundering and know-your-customer practices. However, he questioned why offshore exchanges with little U.S. presence quickly restricted MEXC-related transfers after FinCEN’s designation.
ZachXBT Questions the $16 Billion Estimate
ZachXBT said large centralized exchanges could also show hundreds of millions or billions of dollars in illicit activity. He said he could identify nine- to ten-figure sums at any major exchange. However, he asked what share of MEXC’s total trading volume FinCEN classified as illicit.
He also requested the underlying data and comparisons with other exchanges. ZachXBT acknowledged MEXC’s historically relaxed anti-money laundering and know-your-customer practices. Still, he described FinCEN’s alleged $16 billion illicit transaction amount as overstated.
He also questioned why offshore exchanges with little or no U.S. presence quickly restricted transfers involving MEXC users. He asked who those measures protected and raised concerns about possible U.S. regulatory overreach.
Binance Restricts Transactions Involving MEXC
Binance announced enhanced compliance measures after FinCEN designated MEXC a Primary Money Laundering Concern. The exchange said the restrictions took effect immediately.
Users cannot send funds to or receive funds from MEXC through Binance. They also cannot conduct other transactions involving the exchange. The restriction covers MEXC Global, its affiliates, and related entities.
Binance said it would reject requests to send funds to MEXC addresses. Any direct or indirect transaction involving those entities will face further review.
Accounts and Funds May Face Further Review
Binance warned that affected funds and accounts may face temporary restrictions while reviews continue. It also said such activity may breach its Terms of Use.
ZachXBT contrasted the response to MEXC with the treatment of other exchanges. He specifically cited HTX and KuCoin, arguing that regulators had not sanctioned what he called worse offenders.
