Reserve to Pull LCAP and CMC20 Liquidity From MEXC After FinCEN's $16B Order

Reserve is walking its liquidity out of MEXC. The company says it plans to stop supporting LCAP and CMC20 on the exchange and will soon pull the funds tied to that activity, per tokenpost.com.

The trigger is a U.S. Financial Crimes Enforcement Network order. According to Reserve, that order effectively severs MEXC from the U.S. financial system. FinCEN alleges MEXC Global facilitated at least $16 billion in illicit transactions, including activity linked to evading Iran sanctions.

The exit covers liquidity Reserve provides directly, plus support from its market-making partners. Both are set to wind down on MEXC and then withdraw the associated capital. The scope is narrow: it's about MEXC, not the tokens themselves.

Reserve says liquidity for LCAP and CMC20 on other venues stays put, on-chain markets included. There's no broader halt to support for either token, so traders on other platforms shouldn't expect a change.

The message is blunt: an exchange facing U.S. enforcement action is a place Reserve won't keep capital parked. MEXC has not commented in the report, and it's unclear how quickly the funds actually move.

What happens next hinges on how other market makers and liquidity providers read the same FinCEN order. If they follow Reserve's lead, MEXC could see thinning books on tokens with U.S.-linked issuers.