UK Sanctions Huobi Global for Russia Evasion, HTX Funds Frozen
The UK Foreign, Commonwealth and Development Office (FCDO) designated Huobi Global S.A. on 26 May 2026 under the Russia (Sanctions) (EU Exit) Regulations 2019. The Panama-registered entity, which operates the HTX exchange, stands accused of providing financial services to Kremlin-linked networks, including the A7 payments network and the previously sanctioned Garantex exchange. The designation formed part of a broader package targeting 18 entities and individuals. For the first time, the UK applied Regulation 17A of its Russia sanctions regime to a cryptoasset exchange — a measure previously reserved for sanctioned banks.
TRM Labs traced $4.9 billion in direct on-chain flows from HTX to sanctioned entitiesBlockchain analytics firm TRM Labs reported that Huobi sent more than $4.9 billion in direct on-chain transactions to the entities designated by the UK, their predecessor exchanges, and related Russia-linked high-risk platforms — measured from 2021 onwards. The FCDO separately stated that the A7 network claimed to have moved more than $90 billion in the prior year, equivalent to roughly half of Russia's annual military expenditure. Under the new rules, UK financial firms and crypto service providers are prohibited from maintaining correspondent relationships with the designated entities or processing payments tied to them.
Bybit, OKX, and Bitget tightened compliance checks, freezing some HTX-linked accountsThe designation triggered compliance reviews at multiple major platforms. The Crypto Times reported that Bybit, OKX, and Bitget all issued public warnings within hours and tightened screening on addresses linked to HTX. Users whose funds passed through HTX at any point found accounts frozen on unrelated platforms. HTX argued that the UK action targeted Huobi Global S.A. as a distinct legal entity and that the trading platform's operations remained unaffected.
"This is just a technical mishap", 28 May 2026.
— HTX Molly, Community Representative, HTX
HTX reports partial fund restoration after cooperation with partner exchangesAs of 28 May 2026, HTX's community representative confirmed that some frozen user funds and accounts had been restored to normal after negotiations with affected platforms. HTX stated that trading, deposit, withdrawal, and over-the-counter (OTC) functions continued to operate without restriction. The exchange published an open letter to industry partners. The letter called on exchanges to review risk-control logic for users with normal transaction histories and clear fund sources, rather than applying blanket address-based restrictions. Blockchain analytics firm TRM Labs reported that Huobi sent more than $4.9 billion in direct on-chain transactions to the entities designated by the UK, their predecessor exchanges, and related Russia-linked high-risk platforms — measured from 2021 onwards. The FCDO separately stated that the A7 network claimed to have moved more than $90 billion in the prior year, equivalent to roughly half of Russia's annual military expenditure. Under the new rules, UK financial firms and crypto service providers are prohibited from maintaining correspondent relationships with the designated entities or processing payments tied to them.
Bybit, OKX, and Bitget tightened compliance checks, freezing some HTX-linked accountsThe designation triggered compliance reviews at multiple major platforms. The Crypto Times reported that Bybit, OKX, and Bitget all issued public warnings within hours and tightened screening on addresses linked to HTX. Users whose funds passed through HTX at any point found accounts frozen on unrelated platforms. HTX argued that the UK action targeted Huobi Global S.A. as a distinct legal entity and that the trading platform's operations remained unaffected.
"This is just a technical mishap", 28 May 2026.
— HTX Molly, Community Representative, HTX
HTX reports partial fund restoration after cooperation with partner exchangesAs of 28 May 2026, HTX's community representative confirmed that some frozen user funds and accounts had been restored to normal after negotiations with affected platforms. HTX stated that trading, deposit, withdrawal, and over-the-counter (OTC) functions continued to operate without restriction. The exchange published an open letter to industry partners. The letter called on exchanges to review risk-control logic for users with normal transaction histories and clear fund sources, rather than applying blanket address-based restrictions. The designation triggered compliance reviews at multiple major platforms. The Crypto Times reported that Bybit, OKX, and Bitget all issued public warnings within hours and tightened screening on addresses linked to HTX. Users whose funds passed through HTX at any point found accounts frozen on unrelated platforms. HTX argued that the UK action targeted Huobi Global S.A. as a distinct legal entity and that the trading platform's operations remained unaffected.
"This is just a technical mishap", 28 May 2026.
— HTX Molly, Community Representative, HTX
HTX reports partial fund restoration after cooperation with partner exchangesAs of 28 May 2026, HTX's community representative confirmed that some frozen user funds and accounts had been restored to normal after negotiations with affected platforms. HTX stated that trading, deposit, withdrawal, and over-the-counter (OTC) functions continued to operate without restriction. The exchange published an open letter to industry partners. The letter called on exchanges to review risk-control logic for users with normal transaction histories and clear fund sources, rather than applying blanket address-based restrictions. "This is just a technical mishap", 28 May 2026.
— HTX Molly, Community Representative, HTX
HTX reports partial fund restoration after cooperation with partner exchangesAs of 28 May 2026, HTX's community representative confirmed that some frozen user funds and accounts had been restored to normal after negotiations with affected platforms. HTX stated that trading, deposit, withdrawal, and over-the-counter (OTC) functions continued to operate without restriction. The exchange published an open letter to industry partners. The letter called on exchanges to review risk-control logic for users with normal transaction histories and clear fund sources, rather than applying blanket address-based restrictions. HTX reports partial fund restoration after cooperation with partner exchangesAs of 28 May 2026, HTX's community representative confirmed that some frozen user funds and accounts had been restored to normal after negotiations with affected platforms. HTX stated that trading, deposit, withdrawal, and over-the-counter (OTC) functions continued to operate without restriction. The exchange published an open letter to industry partners. The letter called on exchanges to review risk-control logic for users with normal transaction histories and clear fund sources, rather than applying blanket address-based restrictions. As of 28 May 2026, HTX's community representative confirmed that some frozen user funds and accounts had been restored to normal after negotiations with affected platforms. HTX stated that trading, deposit, withdrawal, and over-the-counter (OTC) functions continued to operate without restriction. The exchange published an open letter to industry partners. The letter called on exchanges to review risk-control logic for users with normal transaction histories and clear fund sources, rather than applying blanket address-based restrictions. Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment. All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Coinpaprika is not liable for any losses resulting from the use of this information.