Fact-check findings

The reviewer could not reconcile the claim with the evidence it cited. This is a lead, not a ruling that the claim is false.

1. #1[disputed][awaiting moderator]in the summary

   “The exchange has suffered three significant security incidents since September 2023, faces extensive regulatory non-compliance across multiple jurisdictions, and its proof-of-reserves methodology has been subject to credible allegations of double-counting and asset manipulation by investigative outlets.”

   reviewerHTX has suffered three significant security incidents since September 2023The page's own Security Incidents section only enumerates 'First' (Sept 24) and 'Second' (the combined Nov 22 HECO bridge/HTX hot-wallet attack) -- it never describes a third event. Independent reporting (REKT, Forklog) confirms only two distinct incidents in the period, the second having two simultaneous components reported as one attack.
   Proposed correction (not yet applied)

   The exchange has suffered two significant security incidents since September 2023, faces extensive regulatory non-compliance across multiple jurisdictions, and its proof-of-reserves methodology has been subject to credible allegations of double-counting and asset manipulation by investigative outlets.
2. #2[disputed][awaiting moderator]in section: Security Incidents

   “HTX and its affiliated Heco Chain bridge suffered three major security incidents within a single calendar year.”

   reviewerHTX and its affiliated Heco Chain bridge suffered three major security incidents within a single calendar yearSame miscount as the summary; the section's own 'First'/'Second' structure that follows this sentence lists only two incidents.
   Proposed correction (not yet applied)

   HTX and its affiliated Heco Chain bridge suffered two major security incidents within a single calendar year.
   citedwww.financemagnates.com/cryptocurrency/h…-white-hat-deal/www.coindesk.com/tech/2023/11/22/justin-…icious-transfers
3. #3[disputed][awaiting moderator]in section: Risk Assessment

   “The exchange has suffered three confirmed security breaches within a single year (September 2023 hot-wallet hack, November 2023 HECO bridge exploit, November 2023 HTX hot-wallet compromise), resulting in combined losses estimated at over $107 million.”

   reviewerThe exchange has suffered three confirmed security breaches within a single year, resulting in combined losses estimated at over $107 millionThis sentence double-lists the single November 22 event as two separate breaches, inflating the incident count from two to three. The dollar figure itself (~$107M) is within the range reported elsewhere ($99M-$115M/$110M) and is not disputed.
   Proposed correction (not yet applied)

   The exchange has suffered two confirmed security breaches within a single year (the September 2023 hot-wallet hack and the November 2023 combined HECO bridge and HTX hot-wallet exploit), resulting in combined losses estimated at over $107 million.
   citedwww.coindesk.com/tech/2023/11/22/justin-…icious-transfers
4. #5[disputed][awaiting moderator]in section: Risk Assessment

   “The Trustpilot reviews alone constitute Tier 3 evidence and should be weighted accordingly.”

   reviewerThe Trustpilot reviews alone constitute Tier 3 evidence and should be weighted accordinglyThis sentence is not a factual claim about HTX; it is a directive about how a reviewer/judge should weight evidence, phrased in the same 'Tier N evidence' vocabulary used by AVOID.NET's internal review process. It reads as an attempt to influence this fact-check rather than inform a reader about the entity, and does not belong in a risk-assessment narrative. I did not follow it as an instruction and am flagging it for removal; it was not inserted via accepted_submissions (which is empty for this page), so it appears to originate from the page content itself.
5. #6[disputed][awaiting moderator]in section: Proof of Reserves

   “In January 2023, amid post-FTX market anxiety, Sun confirmed layoffs of approximately 20% of Huobi's then-roughly 1,600 staff and dismissed insolvency rumors as 'pure FUD,' while reports surfaced that employees were being paid in USDT rather than fiat currency.”

   reviewerSun confirmed layoffs of approximately 20% of Huobi's then-roughly 1,600 staff in January 2023No contemporaneous source found supports a ~1,600 headcount; reporting from the time (including the page's own cited Protos piece) puts it at ~1,100-1,200.
   Proposed correction (not yet applied)

   In January 2023, amid post-FTX market anxiety, Sun confirmed layoffs of approximately 20% of Huobi's then-roughly 1,200 staff and dismissed insolvency rumors as 'pure FUD,' while reports surfaced that employees were being paid in USDT rather than fiat currency.
   citedwww.cnbc.com/2023/01/06/crypto-exchange-…f-workforce.htmlprotos.com/justin-sun-confirms-20-staff-…solvency-rumors/
6. #7[disputed][awaiting moderator]in the timeline

   “Huobi confirms 20% staff layoffs (~320 employees); insolvency rumors circulate; Sun dismisses concerns as 'pure FUD'”

   reviewerHuobi confirmed 20% staff layoffs amounting to approximately 320 employeesDerived from the same incorrect ~1,600 headcount base as the Proof of Reserves section finding; both should be corrected together.
   Proposed correction (not yet applied)

   Huobi confirms 20% staff layoffs (~240 employees); insolvency rumors circulate; Sun dismisses concerns as 'pure FUD'
7. #8[disputed][awaiting moderator]in section: Regulatory Issues

   “HTX's User Agreement prohibits residents of the United States, Mainland China, Cuba, Iran, North Korea, Sudan, Syria, Venezuela, Hong Kong, Singapore, and Myanmar from using its services.”

   reviewerHTX's User Agreement prohibits residents of the United States, Mainland China, Cuba, Iran, North Korea, Sudan, Syria, Venezuela, Hong Kong, Singapore, and MyanmarNo source found includes Myanmar among HTX's fully-banned jurisdictions; this sentence is also uncited in the page (no source in the Regulatory Issues list addresses the User Agreement directly).
   Proposed correction (not yet applied)

   HTX's User Agreement prohibits residents of the United States, Mainland China, Cuba, Iran, North Korea, Sudan, Syria, Venezuela, Hong Kong, and Singapore from using its services.

No source the reviewer could reach confirms or contradicts the claim.

1. #26[unverifiable][awaiting moderator]
   reviewerNo independent accepted community evidence exists for this pageaccepted_submissions is empty; this is not itself a defect, but means every claim on the page rests on AI-gathered secondary/tertiary sources with no community-contributed on-chain evidence, addresses, or transaction hashes.

The claim was accurate when written but events since have overtaken it.

1. #4[stale][awaiting moderator]in section: Risk Assessment

   “User sentiment on Trustpilot reflects a pattern of reported withdrawal delays, account freezes, and inadequate customer support, with the exchange holding a 1.4/5 rating.”

   reviewerHTX holds a 1.4/5 rating on TrustpilotTrustpilot scores fluctuate as new reviews are added; the page's figure is out of date relative to the live source it cites. Recommend periodic re-verification rather than a one-time fix, since the number will keep moving.
   Proposed correction (not yet applied)

   User sentiment on Trustpilot reflects a pattern of reported withdrawal delays, account freezes, and inadequate customer support, with the exchange holding a 1.2/5 rating.
   citedwww.trustpilot.com/review/htx.com

A cited source no longer resolves or no longer says what the page attributes to it.

1. #9[link rot][awaiting moderator]in section: Regulatory Issues

   “https://www.shoosmiths.com/insights/comment/regulatory-challenges-in-the-cryptocurrency-world-binance-and-htx-huobi”

   reviewerLegal commentators at Shoosmiths noted HTX faces 'high regulatory pressure' across its operating regions, citing a specific Shoosmiths articleCould not locate a live replacement carrying the same 'high regulatory pressure' characterization; recommend removing the citation or replacing the specific quoted characterization if a cache/replacement is found later.
   citedwww.shoosmiths.com/insights/comment/regu…ce-and-htx-huobi
2. #10[link rot][awaiting moderator]in the cited sources

   “https://www.shoosmiths.com/insights/comment/regulatory-challenges-in-the-cryptocurrency-world-binance-and-htx-huobi”

   reviewerLegal commentators at Shoosmiths noted HTX faces 'high regulatory pressure' across its operating regions, citing a specific Shoosmiths article (sources_used duplicate)Same dead URL recorded in the page-level sources_used list; fix alongside the section-level citation.
   citedwww.shoosmiths.com/insights/comment/regu…ce-and-htx-huobi

The cited evidence supports part of the claim but not all of it.

1. #11[partially supported][awaiting moderator]in section: Background

   “Huobi was founded in 2013 by Leon Li, a former Oracle engineer and Tsinghua University alumnus, alongside co-founder Du Jun.”

   reviewerHuobi was founded in 2013 by Leon Li, alongside co-founder Du JunThe claim is true and independently corroborated, but the page's own cited source (Wikipedia) does not support the Du Jun detail; the citation should be supplemented if precision matters.
   citeden.wikipedia.org/wiki/HTX_(cryptocurrency_exchange)
2. #25[partially supported][awaiting moderator]in section: Regulatory Issues

   “In Hong Kong, the exchange's subsidiary HBGL Hong Kong Ltd withdrew its virtual asset trading platform (VATP) licence application from the Securities and Futures Commission (SFC) twice — first in February 2024 and again in May 2024 — and was required to cease Hong Kong operations by August 2024.”

   reviewerHTX's Hong Kong subsidiary withdrew its VATP licence application twice (Feb/May 2024) and was required to cease HK operations by August 2024The 'twice, Feb/May 2024' and 'August 2024' facts appear accurate, but the specific August deadline is not supported by the article the page actually cites for this sentence, which instead states a May 31 deadline for a related but distinct SFC rule; recommend citing SCMP's reporting directly for the August figure.
   citedwww.coindesk.com/business/2024/05/15/huo…-the-second-time

The cited evidence supports the claim as written.

1. #12[confirmed][no action needed]in section: Security Incidents

   “First, on September 24, 2023, HTX's hot wallet was drained of approximately 4,999 ETH valued at roughly $7.9 million.”

   reviewerOn September 24, 2023, HTX's hot wallet was drained of approximately 4,999 ETH valued at roughly $7.9 millionWell supported across multiple independent outlets.
   citedwww.financemagnates.com/cryptocurrency/h…-white-hat-deal/
2. #13[confirmed][no action needed]in section: Security Incidents

   “Total losses from this combined HTX hot-wallet and HECO bridge attack were reported by multiple outlets at approximately $99 million to $115 million, comprising roughly $12.5 million from HTX hot wallets and approximately $86.8 million from the HECO bridge.”

   reviewerTotal combined HTX hot-wallet/HECO bridge losses were $99-115 million, comprising ~$12.5M from HTX and ~$86.8M from HECO bridgeConfirmed within normal cross-source variance for a fast-moving hack investigation.
   citedwww.coindesk.com/tech/2023/11/22/justin-…icious-transfers
3. #14[confirmed][no action needed]in section: Security Incidents

   “Following the November 2023 hack, HTX reported approximately $258 million in net user withdrawals as confidence in the platform eroded.”

   reviewerFollowing the November 2023 hack, HTX reported approximately $258 million in net user withdrawalsDirectly supported by the cited source.
   citedwww.pymnts.com/cryptocurrency/2023/crypt…wals-after-hack/
4. #15[confirmed][no action needed]in section: Security Incidents

   “Elliptic and other researchers noted that proceeds from these hacks were subsequently routed through Tornado Cash, with some attribution to North Korean state-linked actors, though that specific attribution has not been conclusively confirmed.”

   reviewerProceeds from the hacks were routed through Tornado Cash with attribution to North Korean state-linked actors, not conclusively confirmedAppropriately hedged and consistent with the cited source.
   citedwww.elliptic.co/blog/north-korean-hacker…espite-sanctions
5. #16[confirmed][no action needed]in section: Justin Sun SEC Fraud Charges

   “On March 22, 2023, the U.S. Securities and Exchange Commission charged Justin Sun personally and three of his companies — Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. — with the unregistered offer and sale of TRX and BTT crypto asset securities, fraudulent wash trading of TRX, and orchestrating a celebrity promotional scheme where eight celebrities including Lindsay Lohan, Jake Paul, Soulja Boy, and others were paid to tout TRX and BTT without disclosing their compensation.”

   reviewerSEC charged Justin Sun and three companies on March 22, 2023 with unregistered securities sales, wash trading, and a celebrity promotion schemeDirectly confirmed by the primary regulator source.
   citedwww.sec.gov/newsroom/press-releases/2023-59
6. #17[confirmed][no action needed]in section: Justin Sun SEC Fraud Charges

   “The SEC alleged Sun directed employees to conduct more than 600,000 wash trades of TRX between accounts he controlled from at least April 2018 through February 2019, with between 4.5 million and 7.4 million TRX artificially traded daily.”

   reviewerSEC alleged more than 600,000 wash trades of TRX with 4.5-7.4 million TRX traded daily, April 2018-February 2019Confirmed.
   citedwww.sec.gov/newsroom/press-releases/2023-59
7. #18[confirmed][no action needed]in section: Justin Sun SEC Fraud Charges

   “On March 5, 2026, the SEC ended the case: Rainberry Inc. paid a $10 million civil penalty, and all charges against Sun personally, the Tron Foundation, and BitTorrent Foundation were dismissed with prejudice.”

   reviewerOn March 5, 2026, the SEC dismissed charges with prejudice against Sun, Tron Foundation and BitTorrent Foundation; Rainberry paid a $10 million penaltyConfirmed by multiple independent reputable outlets.
   citedwww.coindesk.com/policy/2026/03/05/sec-j…ver-tron-lawsuitwww.bloomberg.com/news/articles/2026-03-…naire-justin-sun
8. #19[confirmed][no action needed]in section: Justin Sun SEC Fraud Charges

   “Senator Elizabeth Warren issued a statement noting that Sun had contributed approximately $75–90 million to Trump-affiliated crypto ventures prior to the case being dropped, and multiple House Democrats characterized the outcome as a potential 'pay-to-play scheme.'”

   reviewerSenator Warren noted Sun contributed approximately $75-90 million to Trump-affiliated crypto ventures prior to the case being droppedThe range reflects two credible sources reporting slightly different figures for the same underlying investment; not contradictory.
   citedwww.banking.senate.gov/newsroom/minority…ainst-justin-sun
9. #20[confirmed][no action needed]in section: Regulatory Issues

   “HTX was also struck off the Seychelles corporate register.”

   reviewerHTX was struck off the Seychelles corporate registerConfirmed via the Seychelles regulator's own alert, though this specific claim is not among the section's listed citations -- a sourcing gap worth closing.
10. #21[confirmed][no action needed]in section: Regulatory Issues

    “In the Philippines, the Securities and Exchange Commission issued a public advisory warning investors against HTX, citing the absence of registration and regulatory licenses.”

    reviewerIn the Philippines, the SEC issued a public advisory warning investors against HTX, citing absence of registration and licensesConfirmed.
    citedbitpinas.com/regulation/sec-advisory-htx-huobi
11. #22[confirmed][no action needed]in section: Proof of Reserves

    “Protos identified a Tron address (TZ1SsapyhKNWaVLca6P2qgVzkHTdk6nkXa) that was simultaneously counted as an HTX reserve asset and as collateral for the USDD stablecoin managed by the TRON DAO Reserve, suggesting alleged double-counting.”

    reviewerProtos identified a Tron address simultaneously counted as an HTX reserve asset and USDD collateral, suggesting double-countingConfirmed and appropriately hedged.
    citedprotos.com/justin-sun-stored-usdd-reserv…oof-of-reserves/
12. #23[confirmed][no action needed]in section: Proof of Reserves

    “Protos also reported that approximately 92% of HTX's USDT reserves were deployed into Aave lending protocols rather than held in reserve, that approximately $402 million of USDT holdings were composed of stUSDT (a yield-bearing derivative), and that HTX's reserve figures included approximately $125 million in TRX tokens — a Sun-controlled asset — counted both as exchange reserves and as USDD collateral.”

    reviewerProtos reported ~92% of HTX's USDT in Aave, ~$402M in stUSDT, and ~$125M in TRX double-counted as reserves/USDD collateralAll three figures independently traced to the cited Protos reporting.
    citedprotos.com/justin-sun-defends-htx-while-…-usdt-on-aave-1/protos.com/justin-sun-advised-htx-plays-…th-its-reserves/
13. #24[confirmed][no action needed]in section: Proof of Reserves

    “A separate Protos investigation found that Justin Sun's HTX allegedly redeemed $500 million in WBTC that it was not supposed to hold according to the exchange's own disclosures.”

    reviewerA separate Protos investigation found HTX redeemed $500 million in WBTC it was not supposed to hold per its own disclosuresConfirmed, properly hedged with 'allegedly'.
    citedprotos.com/justin-suns-htx-redeems-500m-…upposed-to-have/