- Blockchain intelligence firm TRM Labs claims HTX, owned by Justin Sun, is rapidly rotating its wallet infrastructure to evade UK sanctions.
- The UK Foreign, Commonwealth, and Development Office (FCDO) sanctioned Huobi Global S.A. in May, alleging it helped Russia’s A7 Network bypass sanctions.
- HTX denies the connection, but court documents show Huobi Global S.A. owns the HTX trademark and previously claimed ownership of the exchange.
- Following the sanctions, HTX moved reserves to an opaque “ThirdParty” category on its proof-of-reserves page, refusing to name the custodian.
- TRM Labs works with Sun’s Tron and Tether in a separate partnership called the “T3 Financial Crime Unit.”
Blockchain intelligence firm TRM Labs has claimed in a new analysis that HTX, owned by Justin Sun, has been “rotating its wallet infrastructure on a rapid cycle” following UK sanctions against Huobi Global S.A.
The UK Foreign, Commonwealth, and Development Office (FCDO) issued sanctions in May, alleging Huobi Global S.A. was used by Russia’s A7 Network to bypass sanctions.
HTX quickly responded, stating that “the listed entity Huobi Global S. A. is distinct from the online HTX exchange.”
However, Huobi Global S.A. owned the US trademark for HTX, and court documents showed it “owns and operates HTX.”
Consequently, HTX moved its reserves to a new “ThirdParty” category on its proof-of-reserves page, refusing to disclose the custodian.
Ari Redbord, global head of policy at TRM Labs, described the behavior as “HTX changing its wallets every few hours to stay a step ahead of screening built on static lists.”
HTX told The Block the practices “reflect routine, security-driven platform operations common across the industry,” and “categorically rejects any characterization implying otherwise.”
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