MEXC Users Hit Deposit Freezes at OKX After US Treasury Blacklist

Traders moving coins from MEXC to OKX are discovering their deposits stuck. Social media reports flagged the problem first, with users saying their funds were frozen over what one called a vague excuse about a 'potentially high-risk address.' 'We are not criminals. We are ordinary crypto users transferring our own assets between exchanges,' one user pushed back.

The trigger is a FinCEN order that slaps MEXC, a top-20 exchange, with special measures and severs it from the US financial system. The Treasury unit alleges the platform moved more than $16 billion for sanctioned entities in Iran, Russia and North Korea, calling it a hub for sanctioned actors. FinCEN's order lets MEXC off the hook until the 30-day transition window closes.

OKX founder and CEO Star Xu did not wait that long. He said the exchange treats the FinCEN action with the same caution as sanctions, and that it beefed up controls well before the deadline. Under those rules, funds tied to affected platforms can be frozen and accounts can face further investigation. His advice to users: don't send funds directly from MEXC.

MEXC CEO Vugar Usi insists the exchange's operations are running smoothly despite heavier withdrawal volumes. The company is working with analytics firm Elliptic to scrub the special risk label off its addresses and push them back into the normal 'exchange' category, according to Bitcoin.com News. Usi also said MEXC is starting an independent review of its anti-money laundering and sanctions controls and plans to engage FinCEN constructively.

For ordinary traders, the worry is bigger than one blocked deposit. Users are asking whether ever touching a MEXC address could taint their wallets, and they're not getting a clear answer. The uncertainty lands on a platform that, before the designation, was riding a hot streak: AI asset spot volume climbed 88% and tokenized US stock spot volume rose 81% in September.

What happens next hinges on two tracks, FinCEN's review and MEXC's push to get its addresses reclassified. Until either moves, expect more frozen deposits and more frustrated posts.