The cryptocurrency exchange HTX has pushed back against allegations from the United Kingdom’s Foreign Office that an affiliate entity, Huobi Global S.A., funneled $1.5 billion to Russia. HTX emphasized that the sanctions apply solely to Huobi Global S.A., which operates as a separate legal entity, and do not impact its main trading platform. The exchange stated it plans to discuss the matter directly with UK authorities to clarify the situation.
UK Foreign Secretary Yvette Cooper announced the sanctions, targeting what she described as crypto and illicit finance networks exploited by Russia. The Foreign Office cited reasonable grounds to suspect that Huobi Global provided financial services to A7 Limited Liability Company and Garantex Europe OU. Cooper warned that Russia cannot evade sanctions by hiding behind crypto networks and shadow financial systems.
In a separate development, blockchain analytics firm Global Ledger traced over $7.6 billion in Russia-linked flows through HTX since 2021, using on-chain data for Bitcoin, Ether, and Tether on Tron. The firm flagged high-risk transactions using internal risk scores above 70, encompassing sanctioned entities, darknet markets, and other illicit typologies. Additionally, TRM Labs identified $4.9 billion in direct on-chain transfers from HTX to UK-designated entities during the same period.
This is the first time the UK has applied banking-style sanctions to a global crypto exchange, requiring British firms to freeze funds and track transactions linked to HTX. Several major exchanges have already issued advisories about heightened compliance checks on HTX-related transfers. HTX has faced previous UK scrutiny, including High Court proceedings initiated by the Financial Conduct Authority over alleged illegal promotion of crypto services to UK consumers.
The designation also highlights broader efforts to tighten Russian-linked crypto rails. Earlier this year, the Grinex exchange shut down after a $13 million hack attributed to foreign intelligence services. Justin Sun, Tron founder and HTX global adviser, has not been personally designated in the latest sanctions.