Reserve said an order from the U.S. Financial Crimes Enforcement Network (FinCEN) led it and its market-making partners to pause liquidity provision for LCAP and CMC20 on the MEXC Global exchange.
The order alleges MEXC Global facilitated illicit transactions totaling at least $16 billion, with some activity linked to efforts to evade Iran sanctions. Reserve cited the order in explaining the pause.
The pause concerns LCAP and CMC20 liquidity that Reserve and its market-making partners supplied on MEXC. They also plan to withdraw funds tied to that activity soon.
Reserve said liquidity provision for the two tokens will continue on other venues, including on-chain markets.
