Blockchain researchers warn HTX sanctions may blur crypto risk signals
Blockchain researchers criticized the UK’s sanctions on HTX, saying targeting “all of HTX” may create broad collateral damage for compliance efforts. Galaxy Digital’s Alex Thorn called the move problematic because many users are legitimate, while Taylor Monahan argued it undermines DeFi efforts to block stolen funds. ZachXBT said the tainting of HTX-linked addresses has become so broad that sanctions-based risk signals are less useful in tracing cases. The UK sanctioned Huobi Global S.A., the Panamanian company behind HTX, over alleged support for Russia-linked financial networks. HTX denied the claims, saying the sanctioned entity is separate from the exchange. A Global Ledger report said HTX processed about $21.06 billion in high-risk flows from 2021 to May 2026, including funds tied to Russian high-risk entities and darknet markets. The sanctions also had downstream effects, including address freezes by World Liberty Financial and HTX’s response of delisting its USD1 stablecoin.
