EU bans transactions with HTX as Russia-linked networks shift

The European Union adopted its 21st sanctions package on July 23 and will prohibit EU operators from transacting with Huobi Global S.A., the entity linked to the HTX exchange, from Aug. 23. The measure bars transactions but does not freeze the company’s assets.

The UK designated Huobi Global on May 26 and imposed an asset freeze and restrictions on providing funds or economic resources. British authorities said they had reasonable grounds to suspect the exchange provided services to entities connected to Russia’s financial system, including the A7 cross-border payments network. After the UK action, a major global exchange warned customers who had used arbitrage between its platform and HTX that continuing transfers could trigger extra scrutiny, urging users: “Please avoid this behavior.”

HTX has disputed being the same entity named in the UK designation, stating, “The listed entity Huobi Global S.A. is distinct from the online HTX exchange.” Justin Sun, an adviser to HTX, described the exchange as compliant with applicable laws and cooperative with law enforcement. UK authorities list HTX and HTX Exchange among names associated with Huobi Global.

Blockchain intelligence firm TRM Labs reported that following the UK designation HTX changed hot wallets and funding addresses across Tron, Ethereum, BNB Smart Chain and Solana. Some addresses were active for only hours before being replaced, producing rapid turnover that static blocklists used by compliance teams struggled to track.

TRM said firms screening for sanctions exposure need to follow transaction patterns, funding relationships and other on-chain behavior to link newly activated wallets to known platforms. The firm noted that funds moving one or two transaction hops from designated platforms can still prompt compliance reviews.

A blockchain investigator working on tracing cases reported that the spread of addresses touching HTX has reduced the usefulness of taint analysis in some investigations. He described widespread on-chain “tainting” that makes it difficult to determine whether particular transactions were illicit or occurred after a designation, and he criticized screening tools for failing to separate pre-designation activity from post-designation flows.

The EU package also extended transaction restrictions to 14 crypto-related service platforms based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan and Belarus. Several of the listed platforms have faced previous action by Western authorities.

The package added designations tied to the A7 network, identifying entities such as A7 Nigeria and A7 Africa. TRM reported that A7 expanded into Lagos and Harare and claimed to have processed more than $90 billion during 2025. The network has links to sanctioned Moldovan politician Ilan Shor and the Russian lender Promsvyazbank, and operates A7A5, a ruble-backed stablecoin used for settlements within the network.

TRM said that after earlier crackdowns on platforms such as Garantex, transaction flows moved toward successor infrastructure and networks including A7. The EU’s new authority allows regulators to prohibit transactions with crypto providers across entire third countries when platforms in those jurisdictions are used to help evade sanctions, enabling Brussels to deny EU operators the ability to transact with providers in targeted countries.