The EU has sanctioned Justin Sun's HTX, following earlier UK measures, as part of broader efforts against Russia.
HTX Sanctioned by EU
The European Union has included HTX, a cryptocurrency exchange linked to billionaire Justin Sun, in its latest round of sanctions against Russia. This addition is part of the EU's 21st sanctions package, which was adopted recently and marks the most extensive set of sanctions in four years, comprising a total of 218 entities.
HTX is listed under its parent company, Huobi Global SA, in the sanctions package, which alleges that the exchange significantly undermines EU efforts against Russia. Effective August 23, EU citizens will be prohibited from transacting with HTX, although the exchange will not face an asset freeze.
Previous UK Sanctions
This action follows the UK's sanctions imposed in May, which HTX has contested, claiming that there is no substantial evidence to justify the measures. The UK had accused HTX of facilitating over $1.5 billion in transactions to the Kremlin and of being involved with the A7 network, which is associated with a ruble-pegged stablecoin.
Broader Crypto Sanctions
The latest sanctions package also expands the EU's stance on cryptocurrency, imposing transaction bans on 14 additional crypto service providers from various countries, including Georgia, Panama, and the UAE. EU foreign policy chief Kaja Kallas emphasized the EU's commitment to tightening restrictions on Russia’s economy with each new sanctions round.
Additionally, the EU has hinted at the possibility of a complete ban on crypto services from certain jurisdictions that support Moscow in evading sanctions. Kallas noted, "We are targeting over a hundred banks and crypto operators," reinforcing the EU's strategy to strangle Russia's financial capabilities amid ongoing conflicts.
HTX's Recent Activity
In light of the UK's sanctions, HTX has reportedly altered its on-chain activities, changing its hot wallets across multiple blockchains to evade monitoring, as noted by blockchain intelligence firm TRM Labs. This development comes just days before the EU's recent designation, which partially addresses the previous lack of sanctions from either the U.S. or EU against the exchange.
