US sanctions eight Canadian money firms over Iran links, FinCEN targets MEXC

What happened

The US Treasury Department sanctioned eight Canadian money-services businesses on Friday, saying they helped sanctioned Iranian entities move funds by exchanging Iranian rials and other currencies for digital assets. The businesses are based in Ontario and British Columbia, according to reporting from Blockonomi. Treasury designated them under Executive Order 13902 as part of Operation Economic Outcast, an initiative it launched in August.

Treasury named Million Exchange, Amin Exchange, NIA Nations, Farah Exchange, CCC Inc, Cryptoyal, Darvish Exchange and Top PC Technician Inc, an affiliate of 1380079 BC Limited. It said Top PC Technician and 1380079 BC operate under the Amin Exchange name. According to Treasury, several of the designated businesses transacted with sanctioned Iranian exchanges including Nobitex, Wallex, Bitpin, Ramzinex and Shelbit, and their crypto addresses received or sent funds tied to Iran's Islamic Revolutionary Guard Corps. Treasury also said some targets changed names and addresses to avoid detection.

In a separate action, the Financial Crimes Enforcement Network issued an order against MEXC Global over at least $16 billion in illicit transactions, including activity connected to Iran sanctions evasion. According to Treasury, the order effectively severs MEXC's access to the US financial system. Treasury coordinated the Canadian designations with FINTRAC, Canada's financial intelligence unit, and the Drug Enforcement Administration took part in the broader enforcement effort, according to Blockonomi.

Why it matters

The designations widen Washington's effort to stop sanctioned actors from using digital assets to cross borders. Money-services businesses sit at the point where cash and local currencies can be converted into crypto, making them a focus for sanctions enforcers. Treasury Secretary Scott Bessent said Canada should not be a safe haven for facilitators that help Iran and its proxies evade sanctions, and that Treasury would pursue the regime's financial channels worldwide, according to Cointelegraph.

For crypto exchanges, payment providers and intermediaries, the reports describe clear legal exposure. OFAC restrictions generally block property under US jurisdiction and bar US persons from transactions involving designated entities unless an exemption or license applies. Foreign individuals and companies can also face penalties for violating or helping evade US sanctions, Blockonomi reported. Blockchain records can be examined through wallet addresses and transaction histories, but converting cash to crypto does not by itself remove sanctions risk.

What the data shows

The reports cite eight designated Canadian businesses, the use of Executive Order 13902, and coordination with FINTRAC and the DEA. Treasury's MEXC order concerns at least $16 billion in illicit transactions. The five Iranian exchanges named in the Canadian action are Nobitex, Wallex, Bitpin, Ramzinex and Shelbit. Treasury's separate rewards offer for information on Iran's nuclear program reaches up to $20 million. Prior designations cited in the reporting date to June and August 2026.

Background

Operation Economic Outcast began in August. Before Friday's action, Treasury had sanctioned Iranian exchanges Nobitex, Wallex, Bitpin and Ramzinex in June 2026 and Aban Tether Exchange and Shelbit in August, according to Blockonomi. Cointelegraph reported in August that OFAC was targeting crypto exchanges that facilitated transfers to the IRGC, and Bessent said then that the US planned to increase economic pressure on Iran through dollars, rials or crypto.

Treasury also alleged that several of the Canadian businesses helped launder proceeds for Ryan Wedding, a sanctioned Canadian drug trafficker and former Olympic snowboarder. According to the department, Wedding used cash couriers to deliver drug proceeds to money-services businesses, which converted the cash into digital assets before sending funds abroad. In a separate Friday action, the US Rewards for Justice program offered as much as $20 million and possible relocation for information about Iran's nuclear program, Cointelegraph reported.

What is still unclear

The reports did not say whether the Canadian businesses or MEXC responded to the actions, and they did not provide the total value of transactions handled by the eight Canadian firms. They also did not detail what specific penalties, if any, the businesses face beyond the sanctions and FinCEN order. It was not clear from the reports whether Canadian authorities would take parallel action.

What to watch

Whether MEXC seeks relief from the FinCEN order, whether any of the Canadian businesses challenge their designations, and whether Treasury issues further Iran-related crypto actions are open questions. Treasury said the designations continue its campaign to disrupt Iran's use of digital assets to fund terrorism, human rights abuses and attacks on US personnel and allies. The reports did not indicate whether MEXC or the Canadian firms had commented.

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