One reaction is panic. @sheeplzh asks: Most of the U I withdraw from MEXC isn’t accepted for deposits by U cards or exchanges—otherwise, the account will be frozen. Besides keeping it in a wallet, what compliant ways are there to use it?

The other reaction is to urge everyone to stay calm. @nancy_c813 read the Treasury Department’s press release from beginning to end and said it didn’t mention freezing users’ assets anywhere.

Both sides are right. The order didn’t freeze the funds on MEXC, but once the money leaves MEXC, it’s becoming harder to find somewhere to go.

On November 6, FinCEN designated MEXC Global as a primary money laundering concern linked to illicit Russian financial activity under the Combating Russian Money Laundering Act, citing at least $16 billion in suspicious transactions since 2021. The order applies to U.S. financial institutions, which can no longer engage in any financial transactions with MEXC, including cryptocurrency transactions. It will take effect 30 days after publication in the Federal Register. Assets on MEXC have not been frozen, and MEXC’s CEO has said that deposits and withdrawals are operating normally.

The order hasn’t taken effect yet, but OKX was the first to act. This morning, @star_okx posted: Please temporarily avoid transferring funds directly from MEXC to OKX. Funds originating from the platform may be frozen for review. Although FinCEN has allowed a 30-day transition period, OKX has chosen to significantly tighten its risk controls early rather than wait until the deadline.

Bitget Wallet also said that its bank card top-ups will not accept funds identified as originating from MEXC for the time being. So far, Binance hasn’t made any public statements.

I think what people are really afraid of is money starting to have a traceable origin.

We used to take it for granted that one USDT was just like any other, no matter which exchange it came from. MEXC lists tokens quickly and has lots of small-cap coins. Plenty of people bought early-stage coins there, then withdrew their profits elsewhere. Hardly anyone ever thought about where that money came from.

MEXC is still open, and your coins are still there. But after you withdraw them, you can’t send them to OKX or use them with some U cards. No one knows how many places will still accept “money from MEXC” 30 days from now, or which exchange will be named next. That uncertainty is what’s causing the panic.

Here’s what to watch next: first, when the order is published—the 30 days start counting from then; second, FinCEN says it will provide a way to reject transfers, so how each exchange implements that; and third, whether major exchanges like Binance and Bybit follow suit.

OKX has always preferred to act early rather than late.

Do you have any USDT that came from MEXC? Where are you planning to keep it now?

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Originally published on X by @musinoot