The UK recently sanctioned HTX over allegations of funneling funds to the Kremlin, but the Justin Sun-owned exchange is fighting back differently. Instead of merely challenging the move in court, it has been overhauling deposit and hot wallet addresses within hours.
TRM Labs published a report on Tuesday showing this activity happening simultaneously across four major networks: TRON, Ethereum, BNB Smart Chain, and Solana. HTX retires each new address so quickly that traditional blocklists are instantly crippled in halting transaction flows.
A Moving Target
The UK imposed sanctions on May 26, 2026, through OFSI. The primary targets were HTX and an entity named the A7 network, accused of facilitating a $1.5 billion fund flow to Russia to finance the invasion of Ukraine. This marks the first time the UK has targeted a crypto exchange of HTX’s scale, a platform that recorded over $3 trillion in trading volume throughout 2025.
However, TRM’s findings reveal that OFSI’s methods are ineffective on the ground. By the time authorities blacklist specific HTX addresses, the exchange has already moved its fund flows to new addresses. TRM described it as a moving target, rendering address-blocking rules obsolete within hours. The tactic reminds analysts of Garantex, the Russian exchange sanctioned in March 2025. The difference is that Garantex chose to hide by rebranding as Grinex, while HTX retains its original identity while continuously rotating its wallet infrastructure.
One Sanction, Two Worlds
What makes this pursuit complicated is not just the shifting blockchain addresses. The obligation to freeze assets currently applies only to firms under UK law. Regulators in the United States through OFAC and authorities in the European Union have not yet added HTX to their sanctions lists. Without that uniformity, the freeze mandate falls solely on UK-registered firms, even though TRM urges other parties to treat HTX as a high-risk entity for sanctions evasion.
An HTX spokesperson dismissed allegations that they are deliberately evading the law, claiming that rotating thousands of wallets is purely standard operational security common across the crypto industry. The denial comes amid HTX’s existing track record of friction with UK authorities, following sanctions from the FCA over illegal promotions to local customers.
A True Test for Regulators
For Justin Sun, this latest pressure from the UK comes shortly after settling a fraud case with the SEC in early 2026. For law enforcement reading TRM’s report, it serves as evidence that blocking static addresses can no longer constrain major crypto entities. If regulators want to cut off fund flows on the blockchain, they will need to rewrite the playbook - or watch their restricted lists become useless scrap every few hours. Via Decrypt.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
