- TRM Labs reports HTX rebuilt its wallet infrastructure after UK sanctions, rapidly rotating wallets across Tron, Ethereum, BNB Smart Chain, and Solana
- The exchange’s wallet rotation creates a “continuous moving target” that makes address-list screening ineffective within hours
- HTX denies wrongdoing, calling the activity routine security-driven platform operations common across the industry
- The UK designated Huobi Global S.A. in May, alleging over $1.5 billion was channeled to Russia
Blockchain intelligence firm TRM Labs reported Tuesday that crypto exchange HTX has rebuilt its wallet infrastructure in the weeks since the UK sanctioned it, according to a report. The Office of Financial Sanctions Implementation designated Huobi Global S.A., the entity behind HTX, on May 26, the first time the UK applied the measure to a crypto exchange of that size.
The sanctions package targeted exchanges linked to the “A7 network,” which British authorities said was used by Russia to evade restrictions, per the UK government. The UK flagged HTX as a major global exchange suspected of channeling over $1.5 billion to the Kremlin.
TRM Labs said HTX stayed live under the same brand but began cycling wallets across TRON, Ethereum, BNB Smart Chain, and Solana, retiring each hot wallet within hours. The effect, according to the firm, is a “continuous moving target” for compliance professionals.
A block list built on specific HTX addresses “goes stale within hours,” TRM said, clearing most activity the exchange has run since the designation. The firm argued that screening keeps pace only when it tracks the behavior behind the rotating wallets.
HTX told Decrypt that the activity reflects “routine, security-driven platform operations” and rejected any characterization implying otherwise. The exchange has contested the UK action before, stating the listed entity is distinct from the online HTX exchange.
The U.S. Treasury’s OFAC and the EU have not designated HTX, so freeze obligations fall only on UK-regulated firms. TRM urged others to treat the exchange as an “elevated sanctions-evasion risk.”
HTX is owned and advised by Justin Sun, the billionaire crypto entrepreneur whose U.S. fraud case was settled by the SEC earlier this year. The exchange reported more than $3 trillion in trading volume in 2025.
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