KuCoin Expands Sanctions Screening to 17 Platforms Including HTX

KuCoin has expanded its sanctions compliance screening to block indirect crypto transfers across 17 platforms, including Justin Sun-linked HTX, even when users do not transact directly with the listed entities.

The exchange issued a compliance notice on August 27 detailing the restrictions, which now cover Shelbit General Trading LLC, Aban Tether Exchange, A7 Nigeria, A7 Africa, PilotFinance Ltd, Rapira, Aifory Pro, ABCeX, WhiteBird, NoOnecrypto INC, Tradex, Monease Ltd, BitPapa, Exnode, Exnode Pay, HTX, and EXMO Ltd.

KuCoin screens the source of funds, originating and destination addresses, and intermediary service providers for connections to affected entities. Users may face held or rejected transactions, enhanced review, temporary wallet and account restrictions, or suspension or withdrawal of KuCoin services for repeated or serious violations.

Binance Implements Parallel Restrictions

Binance implemented similar sanctions-compliance measures on August 23, restricting HTX and 10 other platforms. The two largest crypto exchanges now operate aligned compliance frameworks targeting indirect flows to the designated entities.

KuCoin added Shelbit and Aban Tether Exchange to its restrictions on August 7, followed by A7 Nigeria, A7 Africa, and PilotFinance Ltd on August 13. The bulk of the expansion occurred on August 23, when KuCoin added Rapira, Aifory Pro, ABCeX, WhiteBird, NoOnecrypto, Tradex, Monease, BitPapa, Exnode, Exnode Pay, HTX, and EXMO to the list.

HTX Disputes Designation and Reports Activity

HTX disputes the sanctions-related allegations and the corporate identity behind the designation. HTX claims that Huobi Global S.A. is distinct from the online HTX exchange. The platform is pursuing legal and compliance discussions with authorities in the UK and EU.

HTX reported significant transaction volume despite the restrictions. “HTX processed more than 100,000 deposit and withdrawal transactions over two days without identifying new cases of indiscriminate freezes,” said Molly, HTX head of markets.

Some HTX users report funds being frozen on third-party platforms. Kraken received materials relating to 17 HTX user freeze cases. HTX recently upgraded its wallet infrastructure and introduced a withdrawal-address rotation mechanism described as a security measure to reduce disruption from third-party risk controls.

Screening Scope and Enforcement

The indirect transfer screening represents an escalation in compliance enforcement across major exchanges. Unlike direct restrictions on named platforms, KuCoin’s measure targets users whose funds pass through intermediary service providers connected to the 17 entities, expanding the compliance perimeter beyond primary counterparties.

KuCoin did not disclose how many transaction hops the exchange traces or what level of on-chain attribution establishes an indirect connection. Binance did not name the 10 other platforms it restricted alongside HTX on August 23.