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U.S. Treasury cuts crypto exchange MEXC off from the American financial system over alleged $16 billion in illicit flows

By Crypto Info News

Good morning. The U.S. Treasury moved to sever crypto exchange MEXC from the American financial system. Decrypt reported that FinCEN's order, described as part of Operation Economic Outcast, bars U.S. institutions from any transfers to or from MEXC, which Treasury says facilitated $16 billion in illicit finance tied to Iran, North Korea and Russia. Cointelegraph reported that FinCEN ordered U.S. financial institutions to stop processing transfers involving MEXC Global on Friday. The Block reported the figure as $16 billion in transactions connected to Iran.

The framing is disputed. CoinDesk reported that Treasury billed the move as part of its campaign against Iran, but that the order rests on MEXC's alleged role in Russian illicit finance. The outlets do not agree on which country sits at the centre of the case; the reader should note the point is unsettled in the reporting.

Binance saw two separate developments. The Block reported that co-CEO Yi He said chief financial officer Ng is departing to pursue a new venture, under a transition plan put in place over the past six months; the departure comes nine days after a record hack. Separately, CoinDesk reported that users in Spain, France and Poland say they received notices to pull crypto before fees take effect, with affected accounts reportedly set to close on Dec. 31.

Enforcement continued elsewhere. The Block reported that a former FBI agent, Yaroch, pleaded guilty to stealing $2.47 million in crypto from wallets tied to 35 investigations, and will pay at least $2.4 million in restitution. Cointelegraph reported that Yaroch intended to finance a new life in Portugal, where he planned to buy a vineyard. Cointelegraph also reported U.S. sanctions on Canadian money-exchange firms over Iran ties, with Washington offering as much as $20 million for information about Iran's nuclear program.

CoinDesk reported that a Gnosis Pay breach exposed card numbers, home addresses and linked crypto wallets, with one user saying the data tied his home address to every wallet on his account.

In markets, The Block reported that Bitcoin ETFs flipped negative for 2026 after a $1.28 billion outflow week, the worst since June, with BlackRock's IBIT accounting for 98% of Friday's outflows, or $403 million. Bitcoin stood at $75,776.37, up 0.0014% on the day. Ether sat at $2,237.05, up 0.03%; XRP fell 1.32% to $1.16.

Elsewhere, Decrypt reported that Apple and Meta's objections mean all seven of the biggest U.S. tech companies have now asked to keep their shares off the planned OKX-ICE venue. Cointelegraph reported that Bitcoin's eCash fork gives eligible holders an equivalent balance of ECX, with questions remaining over where the tokens can trade. Cointelegraph also reported, citing The New York Times, that bets were placed shortly before two recent Times/Siena political polls were released to the public.

What to watch: how MEXC and U.S. institutions respond to the FinCEN order, whether Binance's European account closures proceed by Dec. 31, and whether ETF outflows continue into next week.