Britain targets HTX, A7 network over Russian sanctions evasion
The UK imposed sanctions on 18 crypto entities and individuals on May 26, 2026, marking the first time British authorities applied banking-style financial restrictions to cryptocurrency exchanges and payment networks. The Foreign, Commonwealth & Development Office designated platforms suspected of facilitating Russian sanctions evasion and war financing, requiring UK financial firms and crypto service providers to freeze funds and trace blockchain transactions linked to the sanctioned entities.
The action targets Huobi Global S.A., operator of HTX, one of the world’s largest crypto exchanges with $3.3 trillion in trading volume last year. Elliptic, a blockchain analytics firm, said HTX is suspected of providing services to both the A7 payments network and Garantex, a Russian crypto exchange that rebranded to Grinex earlier in 2026.
The A7 payments network moved $90 billion last year and is described as helping process proceeds from Russian oil sales and supporting military procurement. The sanctions also target Rapira Group LLC, Aifory LLC, Arvix LLC, and Bitpapa IC FZC LLC, though the specific services these entities provide were not detailed. Four individuals were also designated: Sergey Mendeleev, Igor Gorin, Irina Akopyan, and Liran Cohen, an Israeli national, all accused of sanctions evasion.
Open Joint Stock Company “Virtual Asset Issuer,” a Kyrgyzstan-linked entity behind the USDKG gold-backed stablecoin, was included in the sanctions list. Garantex, previously sanctioned by Western authorities, halted operations last month after a $13 million hack described as state-backed.
The UK invoked Regulation 17A of its Russia sanctions regime to implement the restrictions. This tool was previously applied only to sanctioned banks, making this the first time it has been used against crypto exchanges. Under the rules, UK financial firms and crypto service providers cannot maintain correspondent relationships with designated entities or process payments tied to them.
Compliance obligations extend beyond direct counterparties. According to Elliptic, compliance checks could reach wallets and exchanges appearing anywhere in a transaction chain, potentially affecting downstream firms that interact with sanctioned platforms without direct knowledge of their status.
The sanctions took effect immediately. The source did not specify which UK financial firms have already begun compliance procedures or whether Huobi has responded to the designation.
