HTX rotates hot wallets across blockchains after sanctions

The cryptocurrency exchange HTX has been rapidly rotating its hot wallet addresses across multiple blockchains in the months since the United Kingdom imposed sanctions on its parent entity, creating a moving target for compliance screening, according to a new report from blockchain intelligence firm TRM Labs. The exchange, however, maintains the activity is a routine security practice.

The UK's Office of Financial Sanctions Implementation designated Huobi Global S.A., the entity behind the HTX exchange, on May 26, alleging it had facilitated significant financial flows to Russia. The sanctions package targeted what British authorities described as networks used to channel funds supporting Russia's invasion of Ukraine, specifically flagging HTX as a major exchange suspected of moving more than $1.5 billion.

In a report published on July 21, TRM Labs detailed that HTX has remained operational under the same brand while fundamentally rebuilding its on-chain infrastructure in the weeks following the sanctions. The firm found the exchange now cycles through hot wallets and funding addresses on TRON, Ethereum, BNB Smart Chain, and Solana on rapid cycles, sometimes retiring addresses...