Crypto Firm HTX Accused by UK of Helping Russia Move Money

Cryptocurrency company HTX has been sanctioned by the UK government, which claims the exchange was part of the “infrastructure” used by Russia to circumvent sanctions and helped move $1.5 billion back to the Kremlin.

Huobi Global SA, a Panamanian company that operates HTX, was one of 18 organizations sanctioned by Britain’s Foreign and Development Office for helping Russia evade restrictions designed to thwart its war effort, it said Tuesday.

The sanctions target the A7 network, “a Kremlin-backed system designed to circumvent Western sanctions, finance military supplies and process funds from the sale of oil to finance the war economy,” it said in a statement Tuesday. “This gang uses a Kyrgyz bank suspected of facilitating payments for the network, as well as a major global cryptocurrency exchange that we suspect has funneled more than $1.5 billion into the hands of the Kremlin.”

Russia has been largely cut off from the global financial system since its full-scale invasion of Ukraine in 2022. Since then, regulators and governments have sought to clamp down on illicit financial flows that helped sustain Russia’s war effort. FCDO’s statement stated that the Kremlin is increasingly turning to dark networks and shadow financial systems to sustain its war efforts.

“Regulatory compliance remains our top priority at HTX,” a spokesperson for HTX said in an emailed statement. “We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions in which we operate globally, including the United Kingdom.”

HTX, which formerly traded as Huobi, is dispersed across multiple entities and its ownership structure is unclear. The UK Financial Conduct Authority named Huobi Global SA as the first defendant in its legal claim against the exchange, saying the organization “will be understood to be the owner, operator and controller of HTX Exchange.” The FCA is suing the exchange, saying the firm is illegally promoting financial products to UK consumers.

Justin Sun, a Chinese-born crypto billionaire, is an advisor to HTX. It has previously tied itself closely to the Trump family’s digital asset initiatives, although that partnership has been under pressure in recent months.

Lawyers representing HTX’s former holding company said the Panamanian company had claimed for years to be the operator of the exchange, according to documents filed with the British High Court.

An FCDO spokesman had no comment.

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