HTX Exchange, formerly known as Huobi and owned by TRON founder Justin Sun, has been sanctioned by the UK government for allegedly helping Russia evade sanctions, with the amount reaching up to $1.5 billion.
The UK government office stated in a release:
“...We have reasonable grounds to suspect that HUOBI GLOBAL SA is involved in activities that benefit or support the Russian government, by providing financial services, funds, economic resources, goods, or technology to a company named A7 LIMITED LIABILITY COMPANY, which operates in strategically significant sectors for the Russian government.”
According to the UK government, A7 is a financial services network that Russia uses to process over $90 billion in oil sales revenue. Since Russia launched its attack on Ukraine in 2022, most countries worldwide have imposed sanctions, limiting its oil sales, which account for 60% of Russia's exports.
HTX Denies Links to Russia
The UK has accused HTX and other cryptocurrency exchanges of colluding with a bank located in Kyrgyzstan to transfer funds. The statement mentioned:
“This gang is utilizing a Kyrgyz bank suspected of facilitating payments for this network, and we suspect that it has redirected over $1.5 billion back to the Kremlin through major global cryptocurrency exchanges.”
HTX has denied these allegations, stating that compliance with regulatory authorities is an “absolute priority.”
“We actively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK,” HTX added in a statement released to the media.
HTX also denied any direct connection with Huobi Global SA, stating:
“While Huobi Global S.A. will cooperate with the relevant UK authorities to understand the basis for this action and address any issues promptly, this designation should not affect the online HTX exchange.”
HTX further stated that UK customers should not be impacted and can continue trading on the HTX exchange.