HTX keeps rotating wallets to evade UK sanctions screening: TRM Labs

Crypto exchange HTX has been rotating wallets across four blockchains to avoid screening since UK authorities sanctioned the platform in May, according to TRM Labs.

In a report released Tuesday, the blockchain intelligence firm said that HTX has been rotating hot wallets and funding addresses on regular cycles across TRON, Ethereum, BNB Smart Chain, and Solana.

Specifically, the firm said the exchange retires addresses every few hours, leaving static address-based screening largely ineffective.

In May 2026, the UK Foreign, Commonwealth and Development Office sanctioned Huobi Global S.A., which has rebranded to HTX, for its alleged role in facilitating Russian sanctions evasion.

Despite the sanctions, TRM Labs said HTX has remained operational. The practice turns the exchange's onchain footprint into "a continuous moving target," making it difficult for traditional address-based screening tools to keep up, said the research firm.

"HTX is changing its wallets every few hours to stay a step ahead of screening built on static lists," said Ari Redbord, global head of policy at TRM Labs.

Behavior-based detection

Instead, TRM Labs suggested that behavior-based attribution can identify and link new wallets to sanctioned entities based on their onchain activity rather than relying on static wallet lists.

"When an entity spins up a new wallet, behavior-based attribution recognizes it and ties it back to the designated entity as it comes online, updating nearly as fast as HTX rotates," said the company.

An HTX spokesperson told The Block that the activities referenced in TRM's report "reflect routine, security-driven platform operations common across the industry."

"We categorically reject any characterization implying otherwise and have no further comment," said the spokesperson.

HTX previously said in May that regulatory compliance remains a "top priority," adding: "We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK."

The development comes amid ongoing UK regulatory pressure on the exchange. In February, the UK's Financial Conduct Authority said it began legal proceedings against HTX for allegedly publishing unlawful financial promotions.

The story has been updated to include HTX's comment.