MEXC says blockchain analytics firm Elliptic has removed its special risk classification, following scrutiny over alleged money-laundering activity. CEO Vugar Usi announced the development on November 7, one day after the Financial Crimes Enforcement Network (FinCEN) issued its order targeting the exchange.
Usi said MEXC continues to process deposits and withdrawals despite increased withdrawal activity. The exchange is also assisting users with transactions while reviewing its anti-money laundering controls.
Elliptic Restores MEXC to Exchange Category
Usi said Elliptic had returned MEXC Global to the “Exchange” category in its systems, removing the special risk designation.
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However, MEXC acknowledged FinCEN’s concerns and said it had launched an independent review of its anti-money laundering and sanctions controls. The exchange also plans to engage with US authorities as it addresses the regulatory concerns.
FinCEN Cites $16 Billion in Suspicious Transactions
FinCEN issued its November 6 order under Operation Economic Outcast, citing at least $16 billion in suspicious transactions. The agency linked the activity to Russian networks, Iranian entities, North Korean facilitators and cybercriminals.
The investigation also identified $1.99 billion in transactions linked to cybercriminals and $37.9 million in ransomware payments. However, the order targets covered US financial institutions, not customer balances or MEXC’s global operations.
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