US Treasury Sanctions 8 Canadian Crypto Firms, Cuts Off MEXC

The US Treasury escalated its crackdown on digital-asset firms by sanctioning eight Canadian money-service companies accused of serving sanctioned Iranian entities. The companies allegedly exchanged Iranian rials and other currencies for digital assets, enabling international transactions involving sanctioned Iranian exchanges and wallets linked to Iran’s Islamic Revolutionary Guard Corps.

The sanctions effectively isolate the businesses from the US dollar-based financial system. Treasury officials said the companies had facilitated transactions with both sanctioned Iranian digital-asset exchanges and addresses associated with the IRGC, adding crypto-enabled enforcement to the administration’s broader campaign to restrict Iran’s access to international finance.

Treasury also issued an order cutting cryptocurrency exchange MEXC Global off from the US financial system. FinCEN alleged that MEXC processed at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity between May 2021 and May 2026, including roughly $1.5 billion tied to Russian sanctions evasion. The order will take effect 30 days after publication in the Federal Register and prohibits US financial institutions from processing money transfers involving the exchange. Treasury Secretary Scott Bessent said the action is part of Operation Economic Outcast, an initiative targeting entities that help Iran circumvent US sanctions.

Separately, questions remain over Binance’s hot-wallet safeguards following a reported $6.3 billion hack. The security concerns underscore why exchanges are facing increased scrutiny over how online wallets are segregated and protected. Together, the Treasury actions and Binance fallout highlight a tightening regulatory environment in which major exchanges and money-service businesses face growing compliance and cybersecurity risks.