ZachXBT Questions Whether FinCEN's $16 Billion Illicit-Funds Allegation Against MEXC Is Exaggerated

November 10 — According to on-chain sleuth ZachXBT in a post on X, FinCEN alleges MEXC was involved in $16 billion in illicit funds, an amount he believes "appears to be exaggerated," and he is demanding that the data be made public along with peer comparisons. ZachXBT acknowledges that MEXC's AML/KYC policies have long been lax, but says he could flag hundreds of millions to billions of dollars in illicit activity on any major CEX, including Binance, Coinbase, Bybit, OKX and Kraken. He also questions several offshore CEXs' immediate cutoff of transfers for MEXC users. He argues that with KuCoin left unsanctioned while measures were taken against HTX and MEXC, there are grounds to suspect government overreach.

MEXC CEO Vugar Usi said that MEXC has established communication with FinCEN through a U.S. law firm, that FinCEN confirmed on Monday it had received its written request, and that deposits, withdrawals and trading on the platform are operating normally.