OKX founder Star Xu has warned users not to send funds directly from MEXC Global to OKX after U.S. authorities moved against MEXC. Xu said OKX is treating the U.S. Financial Crimes Enforcement Network action with caution and may freeze incoming funds and investigate accounts if deposits are linked to affected platforms.

The warning followed FinCEN’s designation of MEXC as a primary money laundering concern. While the measure is still pending, it would prohibit U.S. financial institutions from transacting with MEXC once it is formally published.

OKX signals stricter handling of MEXC-linked deposits

Xu said customers should avoid direct transfers from MEXC to OKX while the situation remains under review. He indicated that OKX has raised its internal scrutiny rather than imposing a blanket ban on all activity connected to the exchange.

According to Xu, OKX’s automated filters are already intercepting deposits from addresses linked to MEXC. In practice, that means some incoming transfers may be stopped, frozen, or subjected to further account checks before users can access the funds.

MEXC chief says operations remain normal

MEXC CEO Vugar Usi pushed back on concerns about the exchange’s condition, saying the platform remains solvent and that deposits and withdrawals are continuing to function smoothly. He said this remains the case even as the exchange experiences higher withdrawal volumes after the U.S. action.

Usi also said blockchain analytics firm Elliptic has moved MEXC back to its standard category. In addition, he said the company is carrying out an independent review of its compliance controls and plans to engage with U.S. authorities.

FinCEN action raises broader compliance pressure

FinCEN’s move centers on allegations that MEXC facilitated illicit transactions. The designation as a primary money laundering concern does not by itself describe a final operating outcome for the exchange, but it does set up a more restrictive environment if the measure takes effect.

Once published, the pending measure would block U.S. financial institutions from transacting with MEXC. That prospect appears to be influencing how other crypto platforms assess transfer risk, even outside the United States.

Regional scrutiny was already building

The U.S. action comes against a backdrop of continuing regulatory friction in Southeast Asia. In the Philippines, the Securities and Exchange Commission has warned the public about unlicensed platforms and MEXC has been removed from domestic app stores.

For now, the clearest confirmed next steps are on the compliance side. OKX is continuing enhanced screening of MEXC-related deposits, while MEXC says it will review its controls and communicate with U.S. authorities as the FinCEN measure moves forward.

Source: bitpinas.com