EU Sanctions Crypto Exchange HTX Over Alleged Support for…

The European Union has imposed sanctions on cryptocurrency exchange HTX and 13 other digital-asset service providers, alleging that they helped Russian users circumvent restrictions related to the war in Ukraine. The measures were announced on Thursday and published Friday, targeting financial networks that the EU says support Russia's war economy.

The action against HTX, formerly known as Huobi, does not include a full asset freeze but subjects the exchange to a transaction ban — meaning EU operators are prohibited from transacting with it. While narrower than a full designation, the move increases compliance costs for the exchange and may prompt regulated financial firms to reconsider their ties with the platform. HTX did not immediately respond to a request for comment.

The EU measure follows a UK sanction imposed on HTX in May, which attracted widespread attention as the first time a major exchange had been directly sanctioned. An HTX spokesperson at the time said: “Regulatory compliance remains our absolute top priority at HTX. We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK.” The EU action adds another significant jurisdiction to the regulatory pressure facing the exchange.

The latest sanctions package also targets banks, cryptocurrency networks, oil traders, Russia's shadow fleet and energy revenues. The inclusion of a major exchange signals that authorities are now looking beyond individual wallets and smaller payment providers, focusing instead on platforms capable of processing large cross-border transactions.

HTX was founded in China in 2013 and is one of the world's largest crypto trading platforms. Hong Kong-based billionaire Justin Sun acquired a controlling interest in 2022, though the exchange describes him as an adviser. Sun was a prominent backer of World Liberty Financial, a crypto venture co-founded by U.S. President Donald Trump and his sons, though that relationship has since soured, with WLF freezing tokens and Sun filing a lawsuit. The practical impact of the EU sanctions will depend on guidance from European authorities and the response of counterparties such as banks, custodians and liquidity providers.