Treasury cuts off MEXC Global, crypto moves closer to 401(k) plans, and more

The following article is adapted from The Block's newsletter, The Daily, which comes out on weekday afternoons.

Happy Friday! Bitcoin remains around $75,700 as U.S. spot crypto ETFs saw over $540 million in outflows on Thursday amid a post-midterm market selloff.

In today's newsletter, the U.S. Treasury moves to cut off MEXC Global over alleged $16 billion in transactions linked to Iran, North Korea and Russia, the Trump administration moves closer to allowing crypto in 401(k) retirement plans, Binance hackers swap stolen tokens for $124 million in bitcoin, and more.

Meanwhile, Nigeria's central bank introduces stablecoin licensing rules and bans algorithmic versions, and the U.S. Treasury drops a proposal to lower reporting thresholds for certain cross-border crypto transactions.

P.S. Don't forget to check out The Latent, our sister website covering AI. Get The Latent Daily here and all other The Block newsletters here. Also, follow The Block and The Latent on X for more updates.

Treasury cuts off MEXC Global over alleged $16 billion in transactions linked to Iran, North Korea and Russia

The U.S. Treasury Department said it has cut off crypto exchange MEXC Global from the U.S. financial system over an alleged $16 billion in transactions connected to Iran, North Korea and Russia.

• The Treasury's Financial Crimes Enforcement Network (FinCEN) issued an order against MEXC Global on Friday, identifying the exchange as a money laundering concern.
• Treasury Secretary Scott Bessent said financial institutions cannot support the Iranian regime and retain access to the U.S. financial system, adding that the department would continue targeting attempts to evade sanctions using digital assets.
• Treasury said MEXC Global had "severe deficiencies" in its anti-money laundering controls, despite the exchange's claims that it maintained such safeguards and restricted users in countries including Iran and North Korea.
• The action follows other Treasury measures against Iranian crypto exchanges, including sanctions against Nobitex in June and BitBank in September over alleged activity linked to Iran.

Trump administration moves closer to allowing crypto in 401(k) retirement plans

The U.S. Department of Labor submitted a proposed rule to the White House's Office of Information and Regulatory Affairs on Thursday, moving closer to allowing alternative assets, including cryptocurrencies, in 401(k) retirement plans.

• The proposal follows President Donald Trump's executive order directing the department to make it easier for retirement plans to include alternative assets, as well as earlier guidance outlining steps plan managers should take when considering such investments.
• The DOL said the rule should help fiduciaries balance potentially higher costs against long-term returns and diversification benefits, though it is still evaluating the costs.
• The department previously reversed Biden-era guidance discouraging retirement managers from considering crypto investments in 401(k) plans.

Elliptic says Binance hackers swapped stolen tokens for $124 million in bitcoin

Hackers behind last week's $6.43 billion Binance breach have converted about $124 million in stolen altcoins into bitcoin, on top of the $1.48 billion in bitcoin stolen in the attack, according to blockchain analytics firm Elliptic.

• The laundering operation has involved more than 20,000 wallets across 16 blockchains and 65,000 transactions, though Elliptic estimates that only a "negligible amount" has been cashed out. About $2.85 billion in stolen funds has been frozen.
• Binance said it aims to reopen withdrawals for HYPE, INJ, APT, PLASMA, NEAR and LTC by the "end of next week," as well as withdrawals for all tokens on already restored networks, including ETH, BSC, Arbitrum and Optimism.

IREN's bitcoin mining revenue drops 58% as firm plans full exit by year-end

IREN's bitcoin mining revenue fell 58% quarter over quarter to $28 million in the three months ended Sept. 30, as the company continued shifting its data center capacity toward AI infrastructure.

• The company aims to substantially complete its transition away from bitcoin mining by Dec. 31, though it expects immaterial mining operations to continue through 2027. AI cloud revenue surged 182% to around $200 million, helping total quarterly revenue rise 66% to $228 million.
• Separately, TeraWulf reported a 69% year-over-year decline in bitcoin mining revenue to $13.2 million in Q3, while high-performance computing lease revenue jumped 774% to nearly $63 million.

Hyperliquid Strategies files to become CFTC-registered FCM

Nasdaq-listed Hyperliquid Strategies filed with the CFTC to become a futures commission merchant, which would allow the firm to carry U.S. client accounts for HIP-3 markets, subject to regulatory approval.

• The company reported $13.3 million in revenue for the quarter ended Sept. 30, exceeding analyst estimates of $10.6 million to $12 million. Net income reached $620.6 million, largely driven by $803 million in unrealized gains on its HYPE holdings.
• The filing follows an agreement between NYSE parent Intercontinental Exchange and TradeXYZ to bring Hyperliquid-based perpetual futures markets to U.S. traders, with ICE set to operate the exchange and clearing infrastructure and TradeXYZ designing the markets.

In the next week

• The U.S. will release October's consumer price index (CPI) on Tuesday, weekly jobless claims on Thursday, and producer price index (PPI) data on Friday. Several Federal Reserve officials are also scheduled to speak throughout the week, including Governor Michael Barr and Vice Chair Michelle Bowman.
• The eurozone will release third-quarter GDP and employment estimates, along with September's trade balance data, on Friday. The ECB will publish its economic bulletin on Thursday, while President Christine Lagarde and several other officials are scheduled to speak during the week.
• Avalanche (AVAX), Babylon (BABY), Aptos (APT), Allora (ALLO) and Aztec (AZTEC) are among the tokens scheduled to unlock next week.

Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.