---
title: "ZachXBT Questions FinCEN’s $16B MEXC Allegation, Raises Concerns Over Regulatory Overreach"
url: https://thecoingazette.com/zachxbt-questions-fincens-16b-mexc-allegation-raises-concerns-over-regulatory-overreach/
date: 2026-11-10
modified: 2026-11-10
lang: en
author: "Coin Gazette Editorial"
description: "Onchain investigator ZachXBT argued that hundreds of millions or even billions of dollars in illicit..."
categories:
  - "Crypto News"
tags:
  - "crypto"
  - "cryptocurrencies"
  - "Defi"
  - "Market Trends"
  - "News"
word_count: 78
---

# ZachXBT Questions FinCEN’s $16B MEXC Allegation, Raises Concerns Over Regulatory Overreach

Onchain investigator ZachXBT argued that hundreds of millions or even billions of dollars in illicit activity could also be identified at other major exchanges, raising concerns about potential U.S. regulatory overreach against platforms like MEXC and HTX. He questioned why offshore exchanges with little U.S. presence rushed to restrict MEXC-related transfers. While acknowledging MEXC’s historically lax AML/KYC practices, he said FinCEN’s $16 billion illicit transaction estimate appeared overstated and called for supporting data and comparisons with other exchanges.