Several major cryptocurrency exchanges warned users this week that transfers involving HTX may face additional compliance checks after Britain sanctioned the exchange over alleged ties to Russian financial networks.
The UK government added HTX to its Russian sanctions list as part of a wider package targeting entities accused of aiding sanctions evasion and illicit financial activity linked to Moscow.
British authorities said they had “reasonable grounds to suspect” that HTX provided financial services linked to sanctioned entities, including the crypto exchange Garantex and the A7 network, whose A7 LLC issues the ruble-pegged A7A5 stablecoin.
The State Department said the A7 network had used a Kyrgyz bank and a major cryptocurrency exchange to channel an estimated $1.5 billion back to Russia. The A7 network claimed to have moved more than $90 billion last year, the State Department said, about half of Russia’s annual military spending.
The designation has immediate practical consequences. UK financial institutions are now barred from doing business with the exchange and could face fines for interacting with crypto transactions passing through it.
UK-registered virtual asset providers are legally required to freeze funds associated with the designated entities, blockchain research firm Elliptic said, and the sanctions extend to restrictions on correspondent banking relationships and payments involving HTX.
Following the announcement, exchanges including Binance, OKX, Bybit and Bitget issued notices warning users of increased scrutiny regarding HTX-related transactions.
Bitget said it was updating its sanctions screening systems and warned that transactions involving sanctioned entities or associated addresses may be subject to rejection, restrictions or account termination.
Binance, meanwhile, said that transactions involving HTX “may be subject to further compliance review” as part of its sanctions review.
OKX separately warned users who previously engaged in arbitrage trading between HTX and OKX that continued transfers between the platforms following the sanction action could trigger further scrutiny of their accounts.
Bybit also warned that deposits or withdrawals involving HTX-linked addresses may be subject to additional anti-money laundering and risk controls.
“Users are advised to avoid using HTX-related addresses when interacting with Bybit and to ensure that all account activities remain in compliance with local laws and platform policies,” Bybit wrote.
HTX rejected UK claims that it helped Russia’s financial infrastructure and even said it has rejected a listing application for the A7A5 stablecoin.
“To clarify, the listed entity Huobi Global SA is separate from the online HTX exchange,” the company said. “While Huobi Global SA will work with relevant UK authorities to understand the basis of the action and to address any concerns promptly, the designation does not and should not have any impact on the online HTX exchange.”
