UK sanctions HTX over support of Russia in broad sweep over crypto exchanges

The United Kingdom sanctioned a large crypto exchange, accusing it of "supporting the government of Russia."

The UK imposed sanctions on Tuesday against Huobi Global S.A., which has since rebranded to HTX.

"The Secretary of State considers that there are reasonable grounds to suspect that HUOBI GLOBAL SA is or has been involved in obtaining a benefit from or supporting the Government of Russia by providing financial services, or making available funds, economic resources, goods or technology, to a person, namely A7 LIMITED LIABILITY COMPANY, which is carrying on business in a sector of strategic significance to the Government of Russia," the UK government said.

Garantex Europe OU was also named. The UK's move is part of a broader set of sanctions targeting crypto exchanges, banks, and firms linked to Russia's sanctions evasion. The UK is applying Regulation 17A, and the new sanctions mark the first time the UK is using them against crypto exchanges, including Aifory Pro and Arvix LLC, according to Elliptic.

HTX previously ran into legal trouble in the UK. In February, the UK's Financial Conduct Authority said it began legal proceedings against HTX for allegedly publishing unlawful financial promotions on its website and across social media platforms, including TikTok, X, Facebook, Instagram, and YouTube.

A key figure in the crypto space, Justin Sun, is a global advisory board member at HTX. Huobi Global S.A. is distinct from HTX, an HTX spokesperson said. 

In an emailed statement to The Block, an HTX spokesperson said that "regulatory compliance remains our absolute top priority."

"We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK," the spokesperson said.

Updated at 5 p.m. UTC time on May 26 to add a statement 

Clarified at 12:30 a.m. UTC time on May 26 to make the relationship between Huobi Global S.A. and HTX clearer