Researchers warn HTX sanctions may blur compliance risk signals

Blockchain researchers say the United Kingdom’s decision to sanction “all of HTX” risks blurring industry risk signals. Alex Thorn, head of research at Galaxy Digital, called the move “problematic,” noting the exchange has many legitimate users and pointing to wide differences in how stablecoin issuers decide when to freeze tokens.

Security researcher Taylor Monahan argued the sanctions have undermined years of work to push decentralized finance protocols to screen and block stolen funds, and said most HTX users are legitimate. Investigator ZachXBT described the measures as “a bit of an overreach,” saying HTX address tainting onchain has been “catastrophic” and that he has had to ignore the sanctions category when tracing exposure because 'risk' has become meaningless.

The criticism follows the UK’s May 26 sanctions against Huobi Global S.A., the Panamanian company behind HTX, taken over alleged support for Russia-linked financial networks.

United Kingdom

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