Audit log

Every state-changing event for Huobi / HTX: moderation decisions on community submissions, plus corrections and updates from the news pipeline. URL-based decisions carry three independent witnesses — the original source, an Internet Archive snapshot taken at submission time, and a Solana memo signed by our publicly-disclosed publisher key.

1. #1publishby system:backfill

   2026-06-29 23:20:34Z
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   4kwMYAjR3TjZ…672XT5yucopyexplorer ↗

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   {"actor":"system:backfill","investigation_id":"2ece5745-c331-49f2-8a6b-cbd578cfd4e5","kind":"publish","page_slug":"huobi-htx","published_at":"2026-06-29T23:20:33.990Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Huobi / HTX","sections":[{"content":"Huobi was founded in 2013 by Leon Li (Leon Lin Li), a former Oracle software engineer and Tsinghua University alumnus. The exchange launched a Bitcoin trading platform on September 1, 2013, and by December 2013 had achieved trading volumes exceeding 30 billion yuan, becoming China's largest digital asset exchange at that time. The exchange expanded globally over the following decade, operating as Huobi Global S.A., a company registered in Panama.\n\nIn October 2022, Li sold his majority stake to Hong Kong-based About Capital Management, exiting the business entirely. According to multiple reports, cryptocurrency entrepreneur Justin Sun — founder of the Tron blockchain — acquired the exchange around the same time, though Sun has publicly characterized his role as that of a global advisor rather than a direct owner. The exchange confirmed Sun's leadership role in official communications, stating it had 'embarked on the path to rebirth' under his direction.\n\nIn September 2023, Huobi rebranded to HTX, with Justin Sun announcing the name change at the TOKEN2049 event. The 'H' in HTX represents Huobi's legacy, 'T' represents Tron, and 'X' signifies the exchange function. As of 2026, HTX reports serving over 47 million users across more than 160 countries. The exchange recorded approximately USD 3.3 trillion in trading volume in 2025.","heading":"Background and Corporate History","severity":"low","sources":[{"credibility":2,"name":"HTX (cryptocurrency exchange) — Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/HTX_(cryptocurrency_exchange)"},{"credibility":2,"name":"Huobi Global Rebrands to HTX: Embarking on a New Journey to the Next Decade — Nasdaq","type":"news_article","url":"https://www.nasdaq.com/press-release/huobi-global-rebrands-to-htx:-embarking-on-a-new-journey-to-the-next-decade-2023-09"},{"credibility":2,"name":"Justin Sun — Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/Justin_Sun"}]},{"content":"On May 26, 2026, the UK Foreign, Commonwealth and Development Office (FCDO) designated Huobi Global S.A. (the Panama-registered corporate entity operating the HTX exchange) under the Russia (Sanctions) (EU Exit) Regulations 2019. The action was part of a broader package targeting 18 entities and individuals alleged to be part of a cryptocurrency network facilitating Russia's evasion of international trade restrictions imposed in response to its invasion of Ukraine.\n\nThe legal instrument applied was Regulation 17A of the Russia sanctions regime — a provision previously reserved for designated banks that imposes correspondent banking and payment processing restrictions. This marked the first time the UK applied Regulation 17A to crypto exchanges, creating a novel enforcement category that compliance analysts described as 'banking-style sanctions' applied to digital asset platforms.\n\nThe official UK sanctions notice (issued May 26, 2026) identifies Huobi Global S.A. with Panama registration number 155737650. The designation imposes: (1) asset freeze obligations requiring UK institutions to freeze funds attributable to the designated entity; (2) prohibitions on UK financial firms and crypto service providers maintaining correspondent relationships or processing payments involving HTX; and (3) internet services restrictions preventing social media, internet access services, and application stores from providing access to HTX content within UK jurisdiction.\n\nThe FCDO alleged there are 'reasonable grounds to suspect' that HTX provided financial services to two entities of strategic significance to the Russian government: the A7 Limited Liability Company and Garantex Europe OU, both previously sanctioned entities. The UK government estimated HTX moved approximately USD 1.5 billion for Kremlin-aligned entities.","heading":"UK Sanctions Designation — May 26, 2026","severity":"critical","sources":[{"credibility":1,"name":"Sanctions Notice: 26 May 2026 Regime: Russia — UK Government","type":"regulatory","url":"https://assets.publishing.service.gov.uk/media/6a1578669819be865f421cf1/Sanctions_Notice_Russia_26_May_2026.pdf"},{"credibility":2,"name":"UK sanctions Huobi and ruble stablecoin issuer in crackdown on Russia crypto networks — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/05/26/uk-sanctions-huobi-and-ruble-stablecoin-issuer-in-crackdown-on-russia-crypto-networks"},{"credibility":1,"name":"Crypto Firm HTX Accused by UK of Helping Russia Move Money — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2026-05-26/crypto-firm-htx-sanctioned-by-uk-for-helping-kremlin-move-money"},{"credibility":1,"name":"HUOBI GLOBAL S.A. — OpenSanctions","type":"regulatory","url":"https://www.opensanctions.org/entities/NK-7R8sBgmfBR9cjki7Lse3vN/"},{"credibility":2,"name":"UK designates cryptoasset exchanges including HTX in sweeping new sanctions package — Elliptic","type":"research","url":"https://www.elliptic.co/blog/uk-designates-cryptoasset-exchanges-in-sweeping-new-sanctions-package"}]},{"content":"The UK sanctions action centered on alleged financial relationships between HTX and two primary networks: Garantex and the A7 payments network.\n\nGarantex was a Russia-based cryptocurrency exchange sanctioned by the US Office of Foreign Assets Control (OFAC) in April 2022 for processing over USD 100 million in transactions linked to illicit actors, ransomware groups (including Conti), and darknet markets. Garantex continued to operate after the OFAC designation and was physically dismantled by an international law enforcement operation in March 2025, subsequently rebranding as Grinex before halting operations in April 2026.\n\nThe A7 network emerged as a successor infrastructure after Garantex's disruption. It comprises corporate and banking entities co-owned by sanctioned Moldovan oligarch Ilan Shor and Russian state bank Promsvyazbank. The A7A5 stablecoin — pegged to the Russian ruble and issued in Kyrgyzstan — processed an alleged USD 9.3 billion in its first four months. UK officials alleged the A7 network moved more than USD 90 billion into Russia's economy in 2025 alone, including proceeds from Russian oil sales and military procurement transactions.\n\nOn-chain analytics firm TRM Labs reported that HTX sent more than USD 4.9 billion to UK-designated and A7-network entities since 2021, including: USD 1.95 billion to Garantex in 2022, USD 1.18 billion to Garantex-linked entities in 2023, and USD 838 million to the A7 network in 2025. TRM also reported that after Garantex's takedown, HTX flows to successor exchanges increased approximately ten-fold — from USD 111 million pre-takedown to USD 1.13 billion post-takedown, with the A7 network absorbing USD 838 million of that volume.\n\nA separate analysis by blockchain intelligence firm Global Ledger identified approximately USD 7.64 billion in Russia-linked high-risk flows through HTX between 2021 and May 2026, representing a portion of USD 21.06 billion in total high-risk flows. Global Ledger also flagged flows involving Huione Group, Nobitex, Hezbollah-linked addresses, and North Korea's Lazarus Group, though these findings extend beyond the scope of the UK sanctions action.","heading":"Alleged Connections to the A7 Network and Garantex","severity":"critical","sources":[{"credibility":2,"name":"UK Designates Huobi, Exmo, Bitpapa, and 11 Other Entities for Russian Crypto Sanctions Evasion — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/uk-designates-huobi-exmo-bitpapa-and-11-other-entities-for-russian-crypto-sanctions-evasion"},{"credibility":2,"name":"UK Sanctions Crypto Companies With Russia Ties — Chainalysis","type":"research","url":"https://www.chainalysis.com/blog/uk-sanctions-crypto-entities-russian-trade-blockade-evasion-may-2026/"},{"credibility":2,"name":"HTX denies UK sanctions allegations as new data flags $7.6B Russia-linked flows — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/htx-denies-uk-sanctions-allegations-as-new-data-flags-76b-in-russia-linked-flows"},{"credibility":2,"name":"UK targets A7A5 stablecoin, Huobi/HTX for Russian sanctions evasion — CoinGeek","type":"news_article","url":"https://coingeek.com/uk-targets-a7a5-stablecoin-huobi-htx-for-russian-sanctions-evasion/"},{"credibility":2,"name":"Sanctioned Russian Crypto Exchange Garantex Seized, Operators Charged With Money Laundering — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2025/03/07/sanctioned-russian-crypto-exchange-garantex-seized-operators-charged-with-money-laundering"}]},{"content":"HTX issued an official statement asserting that the UK sanctions designation applies exclusively to Huobi Global S.A. as a distinct legal entity, not to the online HTX exchange platform or its users. The exchange maintained that the designation 'does not and should not have any impact on the online HTX exchange' and stated that user funds remain unaffected. HTX indicated that Huobi Global S.A. would cooperate with UK authorities 'to understand the basis for the action' and expressed intent to challenge the designation.\n\nHTX also disputed the accuracy of the blockchain attributions cited by analysts, though it did not provide specific counter-evidence in its public statements.\n\nJustin Sun was not personally designated in the UK sanctions action. He did not make direct public statements in response to the sanctions by the time of reporting.\n\nCompliance analysts and legal commentators contested HTX's legal distinction argument. The UK Office of Financial Sanctions Implementation (OFSI) interpreted the designation to cover the operating exchange on the basis that Huobi Global S.A. owns more than 50 percent of the shares in the HTX operating platform, making the exchange itself subject to asset freeze and making-available sanctions under the 50 percent ownership rule standard in UK sanctions law.","heading":"HTX Response and Denial","severity":"high","sources":[{"credibility":2,"name":"Official Update: HTX Addresses UK Sanctions Against Huobi Global S.A. — Yahoo Finance","type":"news_article","url":"https://finance.yahoo.com/markets/crypto/articles/uk-sanctions-justin-sun-htx-140251707.html"},{"credibility":2,"name":"UK sanctions HTX: what your screening list needs today — Crystal Intelligence","type":"research","url":"https://crystalintelligence.com/crypto-regulations/uk-sanctions-htx-what-your-screening-list-needs-today/"},{"credibility":2,"name":"UK Designates HTX: What the Biggest Crypto Sanctions Action Yet Means for Compliance Teams — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/uk-designates-htx-what-the-biggest-crypto-sanctions-action-yet-means-for-compliance-teams"}]},{"content":"Following the UK designation, several major cryptocurrency exchanges announced enhanced scrutiny of transactions involving HTX addresses.\n\nBinance stated that transactions involving HTX 'may be subject to additional compliance review.' OKX warned users engaged in cross-exchange arbitrage with HTX that continued transfers could trigger enhanced account scrutiny. Bybit cautioned that deposits or withdrawals linked to HTX addresses 'may face added anti-money laundering and risk-control checks.' Bitget updated its sanctions screening systems and noted that transactions involving sanctioned entities could result in rejection, restrictions, or account termination.\n\nThe sanctions restrict UK financial institutions from transacting with HTX and extend to correspondent banking relationships, creating practical barriers for institutional participants and users attempting cross-exchange transfers. The broader enforcement model — applying banking-style correspondent-banking restrictions to a crypto exchange for the first time at this scale — was described by compliance analysts at Elliptic and TRM Labs as a significant escalation in the application of financial sanctions tools to the digital asset sector.","heading":"Industry Impact and Exchange Responses","severity":"high","sources":[{"credibility":2,"name":"Major crypto exchanges increase transfer scrutiny with HTX over UK sanctions — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/05/27/major-crypto-exchanges-increase-transfer-scrutiny-with-htx-over-uk-sanctions"},{"credibility":2,"name":"UK Designates HTX: What the Biggest Crypto Sanctions Action Yet Means for Compliance Teams — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/uk-designates-htx-what-the-biggest-crypto-sanctions-action-yet-means-for-compliance-teams"}]},{"content":"Prior to the May 2026 sanctions designation, the UK Financial Conduct Authority (FCA) initiated separate legal proceedings against HTX in October 2025 for allegedly breaching UK financial promotions rules. The FCA alleged HTX had continued publishing financial promotions in breach of UK rules on its website and on social media platforms including TikTok, X (formerly Twitter), Facebook, Instagram, and YouTube.\n\nThe FCA described the proceedings as its first court action against a crypto firm for illegally marketing products to UK consumers. The regulator stated that repeated attempts to engage with HTX had been ignored. The FCA asked Apple and Google to remove HTX applications from UK app stores. Several social media platforms complied with FCA requests to restrict HTX access for UK-based consumers: TikTok blocked HTX content by approximately February 2024, Meta blocked Facebook and Instagram access by approximately May 2024, and Telegram followed by approximately October 2024.\n\nThese proceedings under the Financial Services and Markets Act represent a separate regulatory track from the May 2026 sanctions action, though both actions share the same UK legal jurisdiction and concern the same operating entity.","heading":"FCA Legal Proceedings — Illegal Financial Promotions","severity":"high","sources":[{"credibility":1,"name":"FCA takes action against HTX to stop illegal financial promotions — FCA","type":"regulatory","url":"https://www.fca.org.uk/news/press-releases/fca-action-against-htx-illegal-financial-promotions"},{"credibility":1,"name":"HTX (formerly Huobi): legal proceedings information — FCA","type":"regulatory","url":"https://www.fca.org.uk/news/statements/htx-huobi-legal-proceedings"}]},{"content":"Justin Sun, the prominent advisor and alleged controlling figure behind HTX, faced separate regulatory action from the US Securities and Exchange Commission (SEC). In March 2023, the SEC charged Sun and three of his wholly-owned companies — Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. — with the unregistered offer and sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT), as well as alleged fraud, market manipulation through wash trading, and an undisclosed celebrity endorsement scheme.\n\nThe SEC alleged that from at least April 2018 through February 2019, Sun directed employees to conduct more than 600,000 wash trades of TRX between accounts he controlled, with between 4.5 million and 7.4 million TRX allegedly wash traded daily. The SEC also alleged Sun sold TRX into secondary markets, generating approximately USD 31 million in proceeds from alleged unregistered securities offerings.\n\nIn March 2026, the SEC dismissed the fraud and market manipulation charges against Sun personally and against the Tron and BitTorrent foundations, with all charges against Sun dismissed with prejudice. Rainberry Inc. paid a USD 10 million penalty. Sun and his firms neither admitted nor denied the remaining claims. The dismissal with prejudice means the SEC cannot refile the dismissed charges.\n\nSun's role at HTX continued through the period of SEC proceedings. He was not named in the UK sanctions action of May 2026.","heading":"Justin Sun — SEC Charges and Settlement","severity":"high","sources":[{"credibility":1,"name":"SEC Charges Crypto Entrepreneur Justin Sun and His Companies for Fraud and Other Securities Law Violations — SEC.gov","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-59"},{"credibility":2,"name":"SEC-Tron Case Ends: Justin Sun Walks Away With Light $10M Fine — Yahoo Finance","type":"news_article","url":"https://finance.yahoo.com/news/sec-tron-case-ends-justin-073856742.html"}]},{"content":"HTX experienced two significant security breaches in 2023.\n\nOn September 24, 2023, HTX's hot wallet was compromised due to an alleged private key leak, resulting in the loss of approximately USD 7.9 million worth of ETH (4,999 ETH). HTX identified the attacker and sent an on-chain message demanding return of funds minus a 5% white-hat bonus within seven days. The attacker returned the stolen assets on October 7, 2023 and received approximately 250 ETH (valued at USD 408,666) as a white-hat bonus.\n\nIn November 2023, a second and larger incident affected HTX and the HECO Chain bridge. Approximately USD 30 million was drained from HTX directly, and combined losses across HTX and HECO Chain were estimated at approximately USD 115 million. Justin Sun confirmed the breach publicly.\n\nThe September 2023 incident was resolved through direct negotiation and recovery. The November 2023 incident resulted in sustained losses. Both incidents predated the UK sanctions action but contributed to the broader risk profile of the platform under Justin Sun's advisory tenure.","heading":"Security Incidents","severity":"high","sources":[{"credibility":1,"name":"HTX, Heco Chain crypto hack: $115 million stolen so far — CNBC","type":"news_article","url":"https://www.cnbc.com/2023/11/23/htx-heco-chain-crypto-hack-115-million-stolen-so-far.html"},{"credibility":2,"name":"Crypto Exchange HTX Lost $8M of Ether Due to a Hack, Justin Sun Says — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2023/09/25/crypto-exchange-htx-lost-8m-of-ether-due-to-a-hack-justin-sun-says"},{"credibility":2,"name":"Explained: The Huobi Exchange Hack (September 2023) — Halborn","type":"research","url":"https://www.halborn.com/blog/post/explained-the-huobi-exchange-hack-september-2023"}]},{"content":"As of June 2026, HTX continues to operate its exchange platform globally. The exchange publishes Merkle Tree Proof of Reserves and reported major reserve ratios above 100% in April 2026. HTX states it serves over 47 million users across more than 160 countries. The exchange reported USD 3.3 trillion in trading volume for 2025.\n\nHTX is not registered or authorized by the UK FCA and does not serve UK users through authorized channels. The UK sanctions designation of May 26, 2026 remains active with no specified end date. HTX has stated its intent to challenge the designation and cooperate with UK authorities, but no resolution had been announced as of the date of this investigation.\n\nThe designation has resulted in reduced institutional counterparty relationships with major exchanges implementing enhanced scrutiny for HTX-linked transactions. The FCA's separate October 2025 High Court proceedings for illegal financial promotions also remain unresolved.","heading":"Current Operational Status","severity":"medium","sources":[{"credibility":3,"name":"HTX Exchange Review June 2026 — TradingFinder","type":"other","url":"https://tradingfinder.com/exchanges/htx/"},{"credibility":2,"name":"UK sanctions Huobi and ruble stablecoin issuer in crackdown on Russia crypto networks — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/05/26/uk-sanctions-huobi-and-ruble-stablecoin-issuer-in-crackdown-on-russia-crypto-networks"}]}],"sources_used":[{"credibility":1,"name":"UK Government Sanctions Notice — Russia, 26 May 2026","type":"regulatory","url":"https://assets.publishing.service.gov.uk/media/6a1578669819be865f421cf1/Sanctions_Notice_Russia_26_May_2026.pdf"},{"credibility":1,"name":"Crypto Firm HTX Accused by UK of Helping Russia Move Money — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2026-05-26/crypto-firm-htx-sanctioned-by-uk-for-helping-kremlin-move-money"},{"credibility":2,"name":"UK sanctions Huobi and ruble stablecoin issuer in crackdown on Russia crypto networks — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/05/26/uk-sanctions-huobi-and-ruble-stablecoin-issuer-in-crackdown-on-russia-crypto-networks"},{"credibility":2,"name":"Major crypto exchanges increase transfer scrutiny with HTX over UK sanctions — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2026/05/27/major-crypto-exchanges-increase-transfer-scrutiny-with-htx-over-uk-sanctions"},{"credibility":2,"name":"UK Designates Huobi, Exmo, Bitpapa, and 11 Other Entities for Russian Crypto Sanctions Evasion — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/uk-designates-huobi-exmo-bitpapa-and-11-other-entities-for-russian-crypto-sanctions-evasion"},{"credibility":2,"name":"UK Designates HTX: What the Biggest Crypto Sanctions Action Yet Means for Compliance Teams — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/uk-designates-htx-what-the-biggest-crypto-sanctions-action-yet-means-for-compliance-teams"},{"credibility":2,"name":"UK Sanctions Crypto Companies With Russia Ties — Chainalysis","type":"research","url":"https://www.chainalysis.com/blog/uk-sanctions-crypto-entities-russian-trade-blockade-evasion-may-2026/"},{"credibility":2,"name":"UK designates cryptoasset exchanges including HTX in sweeping new sanctions package — Elliptic","type":"research","url":"https://www.elliptic.co/blog/uk-designates-cryptoasset-exchanges-in-sweeping-new-sanctions-package"},{"credibility":2,"name":"HTX denies UK sanctions allegations as new data flags $7.6B Russia-linked flows — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/htx-denies-uk-sanctions-allegations-as-new-data-flags-76b-in-russia-linked-flows"},{"credibility":2,"name":"UK targets A7A5 stablecoin, Huobi/HTX for Russian sanctions evasion — CoinGeek","type":"news_article","url":"https://coingeek.com/uk-targets-a7a5-stablecoin-huobi-htx-for-russian-sanctions-evasion/"},{"credibility":2,"name":"Official Update: HTX Addresses UK Sanctions Against Huobi Global S.A. — Yahoo Finance","type":"news_article","url":"https://finance.yahoo.com/markets/crypto/articles/uk-sanctions-justin-sun-htx-140251707.html"},{"credibility":1,"name":"HUOBI GLOBAL S.A. — OpenSanctions","type":"regulatory","url":"https://www.opensanctions.org/entities/NK-7R8sBgmfBR9cjki7Lse3vN/"},{"credibility":1,"name":"FCA takes action against HTX to stop illegal financial promotions — FCA","type":"regulatory","url":"https://www.fca.org.uk/news/press-releases/fca-action-against-htx-illegal-financial-promotions"},{"credibility":1,"name":"HTX (formerly Huobi): legal proceedings information — FCA","type":"regulatory","url":"https://www.fca.org.uk/news/statements/htx-huobi-legal-proceedings"},{"credibility":1,"name":"SEC Charges Crypto Entrepreneur Justin Sun and His Companies for Fraud — SEC.gov","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-59"},{"credibility":2,"name":"SEC-Tron Case Ends: Justin Sun Walks Away With Light $10M Fine — Yahoo Finance","type":"news_article","url":"https://finance.yahoo.com/news/sec-tron-case-ends-justin-073856742.html"},{"credibility":1,"name":"HTX, Heco Chain crypto hack: $115 million stolen so far — CNBC","type":"news_article","url":"https://www.cnbc.com/2023/11/23/htx-heco-chain-crypto-hack-115-million-stolen-so-far.html"},{"credibility":2,"name":"Crypto Exchange HTX Lost $8M of Ether Due to a Hack, Justin Sun Says — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2023/09/25/crypto-exchange-htx-lost-8m-of-ether-due-to-a-hack-justin-sun-says"},{"credibility":2,"name":"Sanctioned Russian Crypto Exchange Garantex Seized, Operators Charged — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2025/03/07/sanctioned-russian-crypto-exchange-garantex-seized-operators-charged-with-money-laundering"},{"credibility":3,"name":"UK Sanctions HTX Linked to Justin Sun in Crackdown on Russia Crypto Flows — TS2 Tech","type":"news_article","url":"https://ts2.tech/en/uk-sanctions-htx-linked-to-justin-sun-in-crackdown-on-russia-crypto-flows/"},{"credibility":2,"name":"UK Government sanctions cryptocurrency exchange Huobi Global S.A — Outer Temple Chambers","type":"other","url":"https://www.outertemple.com/uk-government-sanctions-cryptocurrency-exchange-huobi-global-s-a/"},{"credibility":2,"name":"Weekly Sanctions Update June 1 2026 — Steptoe","type":"other","url":"https://www.steptoe.com/en/news-publications/international-compliance-blog/weekly-sanctions-update-june-1-2026.html"}],"summary":"HTX (formerly Huobi), one of the world's largest cryptocurrency exchanges, was designated by the UK government on May 26, 2026 under the Russia (Sanctions) (EU Exit) Regulations 2019, marking the first time the UK applied banking-style Regulation 17A correspondent-banking sanctions to a crypto exchange of this scale. The UK's Foreign, Commonwealth and Development Office alleged that the Panama-registered operating entity, Huobi Global S.A., channeled approximately USD 1.5 billion to Russia-linked entities — including the A7 payments network and previously sanctioned exchange Garantex — allegedly aiding the evasion of international trade blockades tied to Russia's invasion of Ukraine. HTX disputed the allegations, asserting that Huobi Global S.A. is legally distinct from the online exchange platform, while on-chain analytics firms published data flagging up to USD 7.6 billion in total Russia-linked flows through HTX since 2021.","timeline":[{"date":"2013-09-01","event":"Huobi launches Bitcoin trading platform in China, founded by Leon Li.","source":"HTX (cryptocurrency exchange) — Wikipedia","source_url":"https://en.wikipedia.org/wiki/HTX_(cryptocurrency_exchange)"},{"date":"2022-04-05","event":"OFAC sanctions Garantex, a Russia-based cryptocurrency exchange, for facilitating over USD 100 million in transactions linked to illicit actors and darknet markets.","source":"US Department of the Treasury","source_url":"https://home.treasury.gov/news/press-releases/sb0225"},{"date":"2022-10-01","event":"Leon Li sells his majority stake in Huobi to About Capital Management. Justin Sun acquires a controlling interest. Li exits all operational roles.","source":"HTX (cryptocurrency exchange) — Wikipedia","source_url":"https://en.wikipedia.org/wiki/HTX_(cryptocurrency_exchange)"},{"date":"2023-03-22","event":"SEC charges Justin Sun and three of his companies with fraud, market manipulation via wash trading, and unregistered offer and sale of crypto securities TRX and BTT.","source":"SEC.gov press release","source_url":"https://www.sec.gov/newsroom/press-releases/2023-59"},{"date":"2023-09-01","event":"Huobi Global rebrands to HTX, announced by Justin Sun at TOKEN2049. The name combines Huobi (H), Tron (T), and Exchange (X).","source":"Huobi Global Rebrands to HTX — Nasdaq","source_url":"https://www.nasdaq.com/press-release/huobi-global-rebrands-to-htx:-embarking-on-a-new-journey-to-the-next-decade-2023-09"},{"date":"2023-09-24","event":"HTX hot wallet compromised via alleged private key leak; approximately USD 7.9 million in ETH stolen.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2023/09/25/crypto-exchange-htx-lost-8m-of-ether-due-to-a-hack-justin-sun-says"},{"date":"2023-10-07","event":"Hacker returns the USD 7.9 million stolen from HTX hot wallet after on-chain negotiation; receives 250 ETH white-hat bonus.","source":"Halborn Security Blog","source_url":"https://www.halborn.com/blog/post/explained-the-huobi-exchange-hack-september-2023"},{"date":"2023-11-23","event":"HTX and HECO Chain bridge suffer coordinated hack; combined losses estimated at approximately USD 115 million.","source":"CNBC","source_url":"https://www.cnbc.com/2023/11/23/htx-heco-chain-crypto-hack-115-million-stolen-so-far.html"},{"date":"2025-03-07","event":"International law enforcement operation seizes Garantex; operators charged with money laundering. Garantex subsequently rebrands as Grinex.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2025/03/07/sanctioned-russian-crypto-exchange-garantex-seized-operators-charged-with-money-laundering"},{"date":"2025-10-01","event":"UK FCA initiates High Court proceedings against Huobi Global S.A. for allegedly publishing illegal financial promotions to UK consumers.","source":"FCA","source_url":"https://www.fca.org.uk/news/press-releases/fca-action-against-htx-illegal-financial-promotions"},{"date":"2026-03-06","event":"SEC dismisses fraud and market manipulation charges against Justin Sun and Tron/BitTorrent foundations with prejudice; Rainberry Inc. pays USD 10 million penalty.","source":"Yahoo Finance","source_url":"https://finance.yahoo.com/news/sec-tron-case-ends-justin-073856742.html"},{"date":"2026-04-01","event":"Garantex successor exchange Grinex halts operations following continued international enforcement pressure.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2026/05/26/uk-sanctions-huobi-and-ruble-stablecoin-issuer-in-crackdown-on-russia-crypto-networks"},{"date":"2026-05-26","event":"UK FCDO designates Huobi Global S.A. under Russia (Sanctions) (EU Exit) Regulations 2019, alleging the exchange channeled approximately USD 1.5 billion to Russia-linked entities including A7 network and Garantex. First application of Regulation 17A banking-style sanctions to a crypto exchange of this scale.","source":"UK Government Sanctions Notice","source_url":"https://assets.publishing.service.gov.uk/media/6a1578669819be865f421cf1/Sanctions_Notice_Russia_26_May_2026.pdf"},{"date":"2026-05-26","event":"HTX issues official statement denying the designation affects the online exchange, asserting Huobi Global S.A. is a legally distinct entity, and stating intent to cooperate with UK authorities.","source":"Yahoo Finance / HTX official statement","source_url":"https://finance.yahoo.com/markets/crypto/articles/uk-sanctions-justin-sun-htx-140251707.html"},{"date":"2026-05-27","event":"Binance, OKX, Bybit, and Bitget announce enhanced compliance scrutiny for transactions involving HTX addresses following the UK sanctions designation.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2026/05/27/major-crypto-exchanges-increase-transfer-scrutiny-with-htx-over-uk-sanctions"}]},"v":1}

   Verify offline (run on your own machine)

   python -m src.verify_decision 8c361a01-8dab-4c6a-92f1-cabfdbecb050copy