UK Issues Sanctions Against Justin Sun's HTX, Other Crypto Firms Over Alleged Russia Ties

In brief

• The U.K. sanctioned HTX and other crypto firms over alleged ties to Russian sanctions evasion networks.
• British institutions are now barred from doing business with HTX, and may have to freeze transactions linked to the exchange.
• HTX founder Justin Sun is currently tied up in a legal feud with the Trump family’s crypto firm.

The United Kingdom announced a package of sanctions Tuesday against entities accused of aiding Russia—including HTX, the massive crypto exchange founded by Justin Sun.

The U.K. government sanctioned HTX for “making available funds, economic resources, goods or technology to individuals and entities in the Russian financial sector.” HTX is one of the largest crypto exchanges in the world, which last year reported over $3 trillion in trading volume.

The British government specifically accused HTX of providing financial services to A7, a Russian crypto exchange with its own ruble-pegged stablecoin, A7A5, that experts say is used by the Russian state to avoid international sanctions.

“If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken,” Yvette Cooper, Britain’s foreign secretary, said Tuesday in a statement.

The penalties the British government has now levied against HTX are sweeping and significant. As of today, all institutions in the country are now banned from establishing any financial relationships with the crypto exchange. Further, and perhaps more impactful, any on-chain transaction that at one point passed through HTX may now be considered a prohibited transaction as well, according to blockchain analytics platform Elliptic.

“The practical effect is that UK VASPs are legally required to freeze funds connected to the designated exchanges,” Elliptic said, speaking of virtual asset service providers, or registered crypto firms within the country.

Representatives for HTX and Justin Sun did not immediately respond to Decrypt’s requests for comment.

Earlier this year, the U.K. began legal proceedings against HTX because the company “illegally promot[ed] crypto asset services to UK customers.” In response, HTX restricted its availability within the country—at least to new customers.

Sun, the exchange’s founder, previously faced a yearslong fraud lawsuit in the United States, until the Trump SEC abruptly moved to settle the case earlier this year. Sun had previously spent tens of millions of dollars buying up tokens from both the Trump family’s crypto firm, World Liberty Financial, and from President Donald Trump’s personal meme coin project. 

Sun’s relationship with the Trumps has recently soured, however, with the crypto founder and World Liberty now locked in multiple lawsuits accusing the other party of rampant misconduct.

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