OKX Warns MEXC Transfers May Be Frozen After U.S. Order

OKX has warned customers to avoid transferring cryptocurrency directly from MEXC after introducing stricter compliance controls in response to a U.S. Treasury order targeting more than $16 billion in alleged illicit transactions processed by the exchange.

The warning followed reports of USDT deposits being frozen for review, including transfers conducted through Ethereum and Tron. OKX founder Star Xu confirmed that the exchange had strengthened its risk controls ahead of the U.S. restrictions taking effect, potentially affecting customers transferring legitimate assets between platforms.

MEXC has rejected suggestions that its operations have been disrupted, maintaining that customer assets remain secure while it reviews the regulatory action.

OKX Freezes MEXC-Linked Deposits Ahead of U.S. Deadline

In a November 7 statement on X, Xu advised users against sending funds directly from MEXC to OKX, acknowledging complaints from customers whose deposits had been flagged as potentially high-risk.

The warning followed a customer complaint involving two USDT deposits of approximately $848.80 and $11.70 that were frozen pending additional verification.

Xu explained that OKX was applying compliance standards comparable to those used for financial sanctions, despite the Treasury order not yet being enforceable.

“Please avoid transferring funds directly from MEXC to OKX,” he wrote, adding that related accounts could face further investigation.

The company has not disclosed how many deposits have been affected, the total value under review or how long customers should expect the restrictions to remain in place.

The freezes represent an independent compliance decision by OKX rather than a blanket requirement for cryptocurrency exchanges worldwide to block MEXC-related assets.

MEXC Maintains Normal Operations as Treasury Restrictions Approach

The warning follows the U.S. Treasury’s decision to restrict MEXC’s access to American financial infrastructure on November 6.

Under FinCEN’s enforcement action, U.S. financial institutions will be prohibited from processing transfers involving MEXC Global, including cryptocurrency transactions.

The restriction takes effect 30 days after publication in the Federal Register and does not automatically freeze customer assets held on MEXC.

FinCEN alleges that the exchange facilitated at least $16 billion in transactions connected to sanctions evasion, cybercrime and other illicit activity between May 2021 and May 2026.

The findings include approximately $1.5 billion linked to Russian sanctions evasion, nearly $1 billion involving Iranian cryptocurrency exchanges and additional activity associated with North Korean financial networks.

MEXC has confirmed that trading and other services remain operational, while announcing an independent review of its anti-money laundering and sanctions controls.

The exchange said it intends to engage with FinCEN and other regulators, although it has not announced whether it will legally challenge the order.

MEXC management has also emphasized that the restrictions concern transfers involving U.S. financial institutions rather than an automatic seizure of assets held on the platform.

The developments come amid broader scrutiny of cryptocurrency exchanges over sanctions compliance. U.S. prosecutors are also investigating potential Iran-related transactions involving Binance, highlighting mounting pressure on trading platforms to strengthen their transaction monitoring systems.

For MEXC customers, the immediate concern extends beyond the U.S. market. OKX’s decision demonstrates how regulatory action in one jurisdiction can prompt other exchanges to restrict transfers before legally mandated deadlines.

Users with deposits already under review face uncertainty over release timelines, while additional platforms may independently reassess their exposure to MEXC-linked funds.

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