HTX denies UK sanctions allegations after the Foreign Office accused affiliate Huobi Global S.A. of funnelling $1.5 billion to Russia.
Summary
- HTX says UK sanctions apply only to Huobi Global S.A. and do not affect its operating exchange.
- The Foreign Office accuses the affiliate of funnelling $1.5 billion to Russia through A7 and Garantex.
- Global Ledger separately traced more than $7.6 billion in Russia-linked flows through the exchange since 2021.
HTX denies UK sanctions allegations after the Foreign Office accused affiliate Huobi Global S.A. of funnelling $1.5 billion to Russia. New data flags $7.6 billion in linked flows.
The UK government designated 18 entities in a Tuesday sanctions package targeting Russia’s “A7” shadow finance network. HTX said the action applies only to Huobi Global S.A. as a separate legal entity.
Why HTX is pushing back on the UK sanctions package
In a post on X, HTX argued its operating exchange runs separately from Huobi Global S.A. and that user funds remain unaffected. The company said it would engage directly with UK authorities on the designation.
Foreign Secretary Yvette Cooper said the package targets “crypto and illicit finance networks” exploited by Russia. The FCDO cited “reasonable grounds to suspect” Huobi Global provided financial services to A7 Limited Liability Company and Garantex Europe OU.
“If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken,” Cooper said in announcing the designation.
The sanctions trigger UK asset freezes and prohibit British firms from processing payments tied to the designated entity. HTX is one of the largest exchanges ever directly hit by a Western government, with $3.3 trillion in 2025 trading volume.
How the $7.6 billion Global Ledger finding lands
A blockchain analytics report from Global Ledger, shared with reporters Wednesday, traced more than $7.6 billion in Russia-linked flows through HTX. The analysis used multi-year on-chain tracing of Bitcoin, Ether, and Tether on Tron.
Global Ledger head of investigations Vladyslav Syrotin said the firm flagged transactions as high-risk using internal risk scores above 70 on a 0-to-100 scale. The threshold captures sanctioned entities, darknet markets, and other illicit typologies.
The report also flagged exposure tied to Huione Group, Nobitex, Hezbollah-linked addresses, and North Korea’s Lazarus Group. The findings suggest HTX’s compliance issues may extend beyond Russia.
TRM Labs separately traced $4.9 billion in direct on-chain transfers from HTX to UK-designated entities since 2021. The Foreign Office said the broader A7 network claimed to have moved over $90 billion last year, roughly half of Russia’s annual military expenditure.
What the case signals for crypto exchange compliance
The designation marks the first time the UK has applied banking-style sanctions to a global crypto exchange, requiring British firms to freeze funds and trace transactions linked to the platform.
Several major exchanges issued advisories to users this week about heightened compliance checks on HTX-related transfers, following the FCDO action and earlier coordinated moves against Garantex and Grinex.
HTX has been under separate UK pressure since February, when the Financial Conduct Authority began High Court proceedings against Huobi Global over allegedly illegal promotion of crypto services to UK consumers.
Justin Sun, the Tron founder and HTX global adviser, has not been personally designated. The A7A5 ruble-backed stablecoin tied to the network has moved more than $6 billion despite earlier US sanctions, according to prior Financial Times analysis.
The case extends a broader tightening on Russian-linked crypto rails. Earlier this year, the Grinex exchange shut down after a $13 million hack blamed on “foreign intelligence services.”
