MEXC crypto exchange linked to money laundering

[KawasakiNinja1_]

At present we only hear news of crypto currency exchanges being hacked and large amounts of Bitcoin Ethereum or other currencies being stolen from there but MEXC Global platform involved in money laundering. The bottom line is that Operation Economic Outcast shut down these platforms' access to the US financial system and found that they facilitated $16 billion in illegal financing.

We all know it is one of the top 20 CVC exchanges in the world and offers trading in over 50 currencies but if I'm not mistaken MEXC has helped Iran, North Korea and Russia avoid sanctions. Another thing I noticed is that MEXC has already suspended USDT withdrawals from BNB smart Chain, Tron, Solana, Polygon and other networks, Although deposit and withdrawal services for other tokens are still available so it is better for our members of this Naija local board to withdraw their cryptoassets from this exchange.

https://finance.yahoo.com/markets/crypto/articles/u-treasury-cuts-off-mexc-220900890.html

[Doan9269]

I don't like this exchange right from the start because they are too strict with their KYC. Not only that, their terms and conditions are too harsh on users. I have seen more than two people who use the exchange complain about account restrictions due to suspicious activity related to money laundering or requests for proof of the source of their funds. All of these are telling us to be more careful and take enough caution when using a centralized platform for our asset holdings in cryptocurrency. Anything can happen, and they may use that against us by denying us access to our coins on their platform.

[Hypnotizer]

I read about their ban from the US financial system earlier on the Exchanges board and it’s pretty surprising to see a centralized exchange of their scale being involved in such activities. Though it’s seems they’re trying to make it look like they aren’t aware by launching an emergency internal investigations.

And you’re right, for anyone still keeping their funds on the exchange it’s better to move to from there immediately.

[MainIbem]

I read about their ban from the US financial system earlier on the Exchanges board and it’s pretty surprising to see a centralized exchange of their scale being involved in such activities. Though it’s seems they’re trying to make it look like they aren’t aware by launching an emergency internal investigations.

And you’re right, for anyone still keeping their funds on the exchange it’s better to move to from there immediately.

Their only crime is allowing countries that are not allies with the US transact with their platform especially North Korea and Iran. It might look unfair to ban them from the US market but with the recent hack relating with North Korea, they shouldn't have allowed transactions from that country. I heard they previously blocked transactions from Russia due to sanctions now they'll also lose a large amount of customers in US too. It good that this information was shared here so people trading with the platform would be aware, I believe that after the hacks on exchanges no one from our board would store a valueable asset like Bitcoin with them.

[Roseline492]

I don't like this exchange right from the start because they are too strict with their KYC. Not only that, their terms and conditions are too harsh on users. I have seen more than two people who use the exchange complain about account restrictions due to suspicious activity related to money laundering or requests for proof of the source of their funds. All of these are telling us to be more careful and take enough caution when using a centralized platform for our asset holdings in cryptocurrency. Anything can happen, and they may use that against us by denying us access to our coins on their platform.

Although I don't dislike MEXC on there kyc because I understand is something most of those big exchanges has a very strick rules on, so actually is not only MEXC that also made it compulsory but although just like you the exchange has never been a preferred option for me after I witnessed how a friend lost his money on the exchange. However this news is not going to affect people from this region who has money on the exchange because is only the United States they have problem with but in terms users it will affect MEXC globally because there reputation is already question and people will definitely loss trust.

[gracreavix]

I will be careful with whatever the USA say someone did or an entity did or didn't do. When something doesn't align with their agenda, they usually call it fraud or something with a terrible name. MEXC helped countries bypass sanctions and they labelled them an enemy of the state. I am not dismissing any fact that might say MEXC did something wrong. I am just saying is that it is not everything you see on the news you believe. Moreover if transactions can't be linked to real life, how else do they know that it is fraud. Seems they are tracking everyone's transactions if you ask me. I maybe lashing out cause of what i have watched and heard about USA and it's everyday false news. But i still want to be open minded that there might be some truth in this.

[Freeveto]

I read about their ban from the US financial system earlier on the Exchanges board and it’s pretty surprising to see a centralized exchange of their scale being involved in such activities. Though it’s seems they’re trying to make it look like they aren’t aware by launching an emergency internal investigations.

And you’re right, for anyone still keeping their funds on the exchange it’s better to move to from there immediately.

This exchange has been involved in price manipulation for long, if you are into trading, you will know how they used to manipulate price especially for newly lunched tokens, they make money from there.
One of the reason they have people well is because they offer their service partially without KYC that is why crypto users who wants to trade or send and receive crypto to some certain amount do use them because of KYC, they have been here for long but don’t have the reputation as other centralized exchanges.

I didn’t usually trust them when the need come because sometimes they lost some meme coins.
This was an another reason to say goodbye to leaving our money in centralized exchanges, they cannot be trusted.

[OsaiEmma]

Before we jump into conclusions hastily, let's read closely what they're being accused of.

Treasury Secretary Scott Bessent said financial institutions cannot both support the Iranian regime and keep access to the U.S. financial system, adding that Treasury will keep working to "sever the Iranian regime's economic lifelines" and stop attempts to evade sanctions using digital assets.

The action is part of Operation Economic Outcast, a Treasury campaign launched in August to cut off financial entities that help Iran evade U.S. sanctions.

This is coming from the link provided by OP. They didn't involve themselves in illegal money in the sense that it was a stolen money, or conventional criminal activities. They processed payments from regions banned by the US.

Of course, processing transactions from sanctioned entities can itself be seen as an illegal activity under applicable sanctions laws. But it's not the same as saying that all the funds involved were stolen or gotten from criminal activities.

This is basically a geopolitical tossel between the US and other countries. The US is using its influence over access to its financial system to enforce their foreign policies on MEXC. Although, if MEXC wants to operate within the US jurisdiction, they should of course keep to their regulations and policies. But they're not like directly involved with the type of money laundry we're thinking of.

[KawasakiNinja1_]

Before we jump into conclusions hastily, let's read closely what they're being accused of.

This is coming from the link provided by OP. They didn't involve themselves in illegal money in the sense that it was a stolen money, or conventional criminal activities. They processed payments from regions banned by the US.

Of course, processing transactions from sanctioned entities can itself be seen as an illegal activity under applicable sanctions laws. But it's not the same as saying that all the funds involved were stolen or gotten from criminal activities.

This is basically a geopolitical tossel between the US and other countries. The US is using its influence over access to its financial system to enforce their foreign policies on MEXC. Although, if MEXC wants to operate within the US jurisdiction, they should of course keep to their regulations and policies. But they're not like directly involved with the type of money laundry we're thinking of.

Well, before you rush, you should also know why they are charged because the link I mentioned mentions that the Treasury has already mentioned that this MEXC has directly dealt with over 40 crypto exchanges in Iran and has sent or received about a billion dollars. Also as you mentioned this exchange is not directly involved in smuggling, so please read this part again carefully.

According to the Treasury's press release, MEXC facilitated the movement of at least $16 billion in illicit funds between May 2021 and May 2026. That includes nearly $1.5 billion tied to Russian sanctions evasion, of which $232 million were direct transactions with entities sanctioned by the U.S., European Union and United Kingdom. Treasury said MEXC was still processing transactions with Russian exchange Garantex and its successor Grinex as recently as June 2026, more than four years after the U.S. sanctioned Garantex in April 2022. It also cited at least $26 million in transactions benefiting the Russia-based A7 sanctions-evasion network and almost $200 million tied to the A7A5 stablecoin the network uses.

[I_Anime]

I don't like this exchange right from the start because they are too strict with their KYC. Not only that, their terms and conditions are too harsh on users. I have seen more than two people who use the exchange complain about account restrictions due to suspicious activity related to money laundering or requests for proof of the source of their funds. All of these are telling us to be more careful and take enough caution when using a centralized platform for our asset holdings in cryptocurrency. Anything can happen, and they may use that against us by denying us access to our coins on their platform.

I don’t even have account with them . I was discouraged by their kyc verification, then was because of airdrop then that’s why I wanted to open account with them.  Funny how most useless airdrop do launch in that exchange, that’s why I don’t waste my time to farm airdrop that’s launching only on mexc then . It was a friend of mine that even told about the issue mexc are facing at the moment , he even told me to withdraw any asset then (fortunately I don’t even have mexc have ) , well the best thing to do is to remove any asset from the exchange first to be safe .

Another day to remember that Keeping your crypto on an exchange means trusting more than just its security. You’re also trusting the people running it, how they handle regulations, their banking partners, and their ability to keep the platform running. “Not Your Keys Not your Coin .

[Cryptomultiplier]

I don't like this exchange right from the start because they are too strict with their KYC. Not only that, their terms and conditions are too harsh on users. I have seen more than two people who use the exchange complain about account restrictions due to suspicious activity related to money laundering or requests for proof of the source of their funds. All of these are telling us to be more careful and take enough caution when using a centralized platform for our asset holdings in cryptocurrency. Anything can happen, and they may use that against us by denying us access to our coins on their platform.

I don’t even have account with them . I was discouraged by their kyc verification, then was because of airdrop then that’s why I wanted to open account with them.  Funny how most useless airdrop do launch in that exchange, that’s why I don’t waste my time to farm airdrop that’s launching only on mexc then . It was a friend of mine that even told about the issue mexc are facing at the moment , he even told me to withdraw any asset then (fortunately I don’t even have mexc have ) , well the best thing to do is to remove any asset from the exchange first to be safe .

Another day to remember that Keeping your crypto on an exchange means trusting more than just its security. You’re also trusting the people running it, how they handle regulations, their banking partners, and their ability to keep the platform running. “Not Your Keys Not your Coin .

What beats my imagination is that how can a CEX that's so much more strict with kyc requirements be involved in money laundering? Aren't they supposed to be the one that's supposed to be anti money laundering since they are strict about rules and policies and are due diligent in following regulations?

Well, with this sanctions against them for illicit financing, they face worse liquidity risk and though I never liked the exchange for a bit, this is just one of the reasons why it's never good to trust an exchange despite their strict kyc requirements or AML policies.
Never keep funds in any exchange and that's the main lesson.

[Cookdata]

I will be careful with whatever the USA say someone did or an entity did or didn't do. When something doesn't align with their agenda, they usually call it fraud or something with a terrible name. MEXC helped countries bypass sanctions and they labelled them an enemy of the state. I am not dismissing any fact that might say MEXC did something wrong. I am just saying is that it is not everything you see on the news you believe. Moreover if transactions can't be linked to real life, how else do they know that it is fraud. Seems they are tracking everyone's transactions if you ask me. I maybe lashing out cause of what i have watched and heard about USA and it's everyday false news. But i still want to be open minded that there might be some truth in this.

I don't know if I should support Us on the exchange or be happy that finally Mxc is caught. The exchange is fond of locking users funds, they list shit coins, pump and dump them and now they got what they deserved, they got Us attention. However, I feel like if they are going to charge the exchange, it should be based on evidence they have and not baseless investigation.

If an exchange doesn't comply with US, suddenly they become an enemy of the state. The US just gave a bounty today $20m in cash on anyone that can help locate Iran Nuclear weapon site and I was shock for a moments, all these months of missile, exchanges of words and there is no evidence and yet the killings never stop and now they want to rub Mxc on our faces. That's on them, I don't know the last time I made deposit on the exchange, they are not honest before.

[Livingleged]

I don't like this exchange right from the start because they are too strict with their KYC. Not only that, their terms and conditions are too harsh on users. I have seen more than two people who use the exchange complain about account restrictions due to suspicious activity related to money laundering or requests for proof of the source of their funds. All of these are telling us to be more careful and take enough caution when using a centralized platform for our asset holdings in cryptocurrency. Anything can happen, and they may use that against us by denying us access to our coins on their platform.

I think it’s not just about being careful with ours asset holdings on the centralized exchange, but to avoid holding funds there totally. What should be on the this centralized exchange should be the funds that we are trading and should also not be huge so that in situations like this, we don’t get cash trapped by any centralized exchange. But it’s funny how many of use have just being too comfortable with our funds seating on those centralised exchanges and we are now waking up because of the recent increase in compromised on the centralized exchange.

[Sim_card]

I just created an account on this Exchange few days ago but I was very reluctant to use it for crypto trade and this happened because Binance paused every activities in their exchange after the hack. I needed an alternative and thought that Mexc will be a good option but after asking from one or two persons and one or two features that I expected to see in the exchange wasn't there, I was disappointed and didn't make any deposit. The next day Binance resumed operation. I didn't even know that they have a lot of red flags.

[Coyster]

I just created an account on this Exchange few days ago but I was very reluctant to use it for crypto trade and this happened because Binance paused every activities in their exchange after the hack. I needed an alternative and thought that Mexc will be a good option but after asking from one or two persons and one or two features that I expected to see in the exchange wasn't there,

What "features" were you looking for, that you couldn't find in MEXC?

It would interest you and some others in this thread, to know that not too long ago Binance were also fined $4.3b by the U.S.'s DOJ. They also intentionally allowed illicit transactions through their exchange and they also failed to comply to sanctions. MEXC isn't the only exchange doing this, so if you choose not to use them for this reason, then that's funny.

[yixichloro2xx]

I don't like this exchange right from the start because they are too strict with their KYC. Not only that, their terms and conditions are too harsh on users. I have seen more than two people who use the exchange complain about account restrictions due to suspicious activity related to money laundering or requests for proof of the source of their funds. All of these are telling us to be more careful and take enough caution when using a centralized platform for our asset holdings in cryptocurrency. Anything can happen, and they may use that against us by denying us access to our coins on their platform.

I don’t even have account with them . I was discouraged by their kyc verification, then was because of airdrop then that’s why I wanted to open account with them.  Funny how most useless airdrop do launch in that exchange, that’s why I don’t waste my time to farm airdrop that’s launching only on mexc then . It was a friend of mine that even told about the issue mexc are facing at the moment , he even told me to withdraw any asset then (fortunately I don’t even have mexc have ) , well the best thing to do is to remove any asset from the exchange first to be safe .

Another day to remember that Keeping your crypto on an exchange means trusting more than just its security. You’re also trusting the people running it, how they handle regulations, their banking partners, and their ability to keep the platform running. “Not Your Keys Not your Coin .

It was telegram airdrop that drew me closer MEXC. Ever since the airdrop wave ended I started using it for P2P. I eventually stopped because of their stupid charges added when doing P2P. Best exchange to do p2p is Gate.io ,. After the airdrop wave ended maybe they started experiencing low trades in their exchanges which made them become desperate to start money laundering. Those guys are going through alot not first they were hacked and hundreds of millions of dollars was stolen on their anniversary day. Now they are being linked with money laundering. Mexc could completely shutdown if it losses the US market and I am sure the Congress will sanction it from operating. A very bad year for them.

[rachael9385]

I don't like this exchange right from the start because they are too strict with their KYC.

I also use the exchange but I have not had any bad experience so far, although, I dint normally use it all the time (just occasionally).
The only time I had to complete KYC verification is during when I was creating the account, I was asked to verify my KYC before making any deposit of which I like that part.
Most exchange allows you to make deposit knowing full well that they won't allow you make any withdrawals until KYC is done.

I didn't even know that they have a lot of red flags.

Not a lot of red flag because I haven't had any bad experience, although I said it before that I don't normally use it, but the few times that I used it I have had any bad experience. My mexc account is still active till now.
And few days time I used it to receive coin and also made a  withdrawal that same day.

[PremiumcryptoHub]

I don't like this exchange right from the start because they are too strict with their KYC. Not only that, their terms and conditions are too harsh on users. I have seen more than two people who use the exchange complain about account restrictions due to suspicious activity related to money laundering or requests for proof of the source of their funds. All of these are telling us to be more careful and take enough caution when using a centralized platform for our asset holdings in cryptocurrency. Anything can happen, and they may use that against us by denying us access to our coins on their platform.

I think it’s not just about being careful with ours asset holdings on the centralized exchange, but to avoid holding funds there totally. What should be on the this centralized exchange should bet the funds that see are trading and should also not be huge so that in situations like this we don’t get cash trapped by any centralized exchange. But it’s funny how many of use have just being too comfortable with our funds seating on those centralised exchanges and we are now waking up because of the recent increase in compromised on the centralized exchange.

Basically we should only use centralized exchanges when trading and P2P are needed and funds should be withdrawn immediately so that they are safe. You are right many people are comfortable keeping funds in centralized exchanges and they don't hesitate to put huge amount of money there but nowadays many people have become aware due to security breaches of these platforms especially after the biggest hacking in crypto history.

The MEXC global has temporarily stopped withdrawing money from some networks but I saw that their deposit and withdrawal services are still open, this surprised us that the OKX CEO urged users to refrain from directly transferring money from MEXC to the OKX exchange.

[ZeroVinsonN]

I don't like this exchange right from the start because they are too strict with their KYC. Not only that, their terms and conditions are too harsh on users. I have seen more than two people who use the exchange complain about account restrictions due to suspicious activity related to money laundering or requests for proof of the source of their funds. All of these are telling us to be more careful and take enough caution when using a centralized platform for our asset holdings in cryptocurrency. Anything can happen, and they may use that against us by denying us access to our coins on their platform.

Most of what you've pointed out actually makes them seem even more trustworthy, when you hear that an exchange is strict with their KYC you will assume they are seriously trying to crack down on the chances of people using them to launder money so it supposed to be surprising when they end up being somehow connected to money laundering themselves.

They can try to make it seem like they didn't know anything about it with their internal investigations but the truth will can't be hidden for long especially with a case like this, my first hearing about this was on a friend's status where he posted about how the US just banned their services in the states.

[Marykeller]

What I am after is the USD blockchain network that they suspended because of this. I don't know how long these suspended networks will remain suspended; will it be for a short time or a long time?

MEXC exchange: I don't know when I last used it. It's because of the demand for KYC; I decided to put a hold on it because I have other exchanges that I'm using without issues. I know that soon or later, I will access them again to see if some changes have been made on the suspended blockchain network; I will get my KYC done since it is mandatory