UK sanctions on HTX-linked firm raise risk score concerns

The United Kingdom's recent sanctions against a company linked to the cryptocurrency exchange HTX have drawn significant criticism from blockchain researchers and investigators, who warn the broad enforcement is disrupting compliance systems and harming legitimate users. The UK's Foreign, Commonwealth and Development Office sanctioned Huobi Global S.A., a Panamanian company identified as being behind the HTX exchange, on May 26, 2026. Authorities stated there were reasonable grounds to suspect the company had supported Russia's government by facilitating financial services and funds through other sanctioned entities, A7 Limited Liability Company and Garantex.

HTX has disputed the action, asserting that the sanctioned legal entity is separate from the operational exchange platform. A report from blockchain analytics firm Global Ledger, however, found that HTX processed approximately $21.06 billion in high-risk crypto flows between 2021 and May 2026, with about $7.64 billion of that linked to Russian high-risk entities and darknet markets including Garantex.

Industry experts argue the sanctions' breadth is creating widespread collateral damage. Researchers including Alex Thorn of...