HTX has revamped its wallet system to adapt to UK sanctions while continuing operations, according to TRM Labs.
Summary
- HTX has adapted its wallet infrastructure and continues operations despite UK sanctions, according to TRM Labs.
- The exchange is rotating wallets across multiple blockchain platforms, complicating compliance monitoring.
- HTX insists these changes are standard security measures, dismissing alternative interpretations.
In response to sanctions imposed by the UK, cryptocurrency exchange HTX has overhauled its wallet infrastructure, as reported by blockchain intelligence firm TRM Labs. The exchange has been rapidly changing its wallet addresses, which has made compliance monitoring increasingly challenging.
TRM Labs highlighted that since the sanctions, HTX has effectively revamped its on-chain framework, creating a situation where address screening cannot keep pace with the rapid shifts. The sanctions, which took effect on May 26, targeted HTX's parent company, Huobi Global S.A., marking a significant move by the UK against a major cryptocurrency exchange allegedly involved in facilitating over $1.5 billion for the Russian government.
A Shifting Target
According to TRM Labs, HTX has maintained its brand while employing a strategy that involves changing its wallet addresses across platforms like TRON, Ethereum, BNB Smart Chain, and Solana. The exchange's hot wallets and funding addresses are retired within hours, creating a “constantly shifting target” for compliance authorities. This rapid rotation renders blacklists based on specific addresses outdated almost immediately.
TRM noted that this behavior is typical of well-resourced entities under sanctions, which often adapt rather than completely cease operations. The report drew comparisons to the Russian exchange Garantex, which similarly shifted its operations after being sanctioned.
Currently, HTX has not been designated by the U.S. Treasury's Office of Foreign Assets Control (OFAC) or the EU, meaning only UK-regulated entities are required to comply with sanctions, although TRM warns that HTX presents an increased risk of sanctions evasion.
Response from HTX
An HTX representative told Decrypt that the activities described in TRM's report are standard security practices within the industry. The spokesperson emphasized that the company categorically rejects any negative implications regarding its operations.
HTX has previously challenged the UK's sanctions, asserting that Huobi Global S.A. operates separately from the HTX exchange and that user funds remain secure. Despite this, the UK's Office of Financial Sanctions Implementation has made it clear that HTX is subject to UK financial sanctions due to its ownership structure.
Earlier this year, the UK's Financial Conduct Authority (FCA) took enforcement actions against HTX for allegedly offering illegal financial services to UK customers, prompting the exchange to restrict new sign-ups from the region. HTX, which reported over $3 trillion in trading volume in 2025, is owned by Justin Sun, a prominent figure in the crypto industry who recently settled a fraud case with the SEC.
