Negotiations Underway
The UK's Financial Conduct Authority (FCA) is in discussions with HTX concerning allegations of unlawful promotions of cryptocurrency services to consumers in the UK. The High Court has temporarily suspended legal proceedings until late August to provide both parties with the opportunity to reach a settlement.
Background of the Case
The FCA's legal actions commenced in the Chancery Division on October 21 of last year, marking a significant enforcement step against crypto exchanges for their marketing practices. The formal complaint was made public in February, with the FCA seeking an injunction and a declaration that HTX violated the Financial Services and Markets Act by engaging in unauthorized financial promotions.
Details of the Allegations
The claim identifies Huobi Global S.A., which was registered in Panama in May 2023, and includes four categories of unidentified individuals linked to HTX, including those who may control the exchange and its social media accounts. Notably, Justin Sun, who gained a controlling interest in HTX in 2022, is not named in the allegations. The negotiations have been ongoing since initial communications in March, with a two-month extension granted on June 25 to continue discussions.
