The UK Foreign Office added crypto exchange HTX to its Russia sanctions list this week, alleging the platform provided financial services connected to sanctioned entities including crypto exchange Garantex and the A7 network, which authorities say channeled roughly $1.5 billion back into Russia via a Kyrgyz bank and a major cryptocurrency exchange.
UK authorities said they had “reasonable grounds to suspect” HTX facilitated financial flows tied to Russian sanctions evasion networks. The designation bars UK financial institutions from conducting business with HTX and requires UK-registered virtual asset service providers to freeze funds connected to the exchange. Correspondent banking relationships and payments involving HTX now face restrictions.
In response, major crypto exchanges implemented heightened compliance screening for HTX-related transfers. Binance stated transactions involving HTX “may be subject to additional compliance review.” OKX warned users engaged in arbitrage trading between HTX and OKX that continued transfers could trigger additional scrutiny. Bybit cautioned that “deposits or withdrawals involving HTX-linked addresses may face added anti-money laundering and risk-control checks,” and advised users to “avoid using HTX-related addresses when interacting with Bybit and to ensure that all account activities remain compliant with local laws and platform policies.”
Bitget updated its sanctions screening systems, warning that transactions involving sanctioned entities could face rejection, restrictions, or account termination.
HTX disputed the designation in a statement, saying “the listed entity Huobi Global S.A. is distinct from the online HTX exchange. While Huobi Global S.A. will work with relevant UK authorities to understand the basis for the action and to address any concerns promptly, the designation does not and should not have any impact on the online HTX exchange.”
The A7 network, which issues the A7A5 ruble-pegged stablecoin, moved an estimated $90 billion last year, according to UK authorities. That volume represents roughly 50% of Russia’s annual military expenditure. HTX stated it refused a listing application for the A7A5 stablecoin.
The sanctions action reflects broader UK efforts to disrupt financial flows supporting Russian military spending. UK-registered virtual asset service providers now face legal obligations to freeze funds tied to designated entities and risk penalties for interacting with transactions passing through HTX.
