In its latest round of sanctions against Russia, the EU has included HTX, a cryptocurrency trading platform linked to Justin Sun, in its restrictions. This marks the second time a major European jurisdiction has targeted the platform since the UK took similar measures in May of this year, with the focus remaining on whether it assisted Russia in circumventing financial restrictions.
Trading will be prohibited starting August 23.
The European Union on Thursday adopted its 21st round of sanctions against Russia, adding Huobi Global SA, the operating entity of HTX, to the annex list. The EU stated that these entities "seriously hinder" the implementation of its sanctions against Russia.
As arranged, starting August 23, individuals and institutions within the EU will be prohibited from transacting with the platform. However, this measure is not equivalent to a comprehensive sanction, nor does it include asset freezing.
EU expands pressure on encrypted services
The EU also signaled a stronger stance, stating that it may impose a comprehensive ban on third-country crypto services that facilitate Russia's circumvention of restrictions. EU High Representative for Foreign Affairs and Security Policy, Karas, stated that this round of measures covers over 100 banks and crypto operators, aiming to further cripple Russia's ability to finance its war effort.
European Commission President Ursula von der Leyen also stated that this round of measures adds 32 Russian banks to the trading ban list. This round of sanctions has been described by the EU as one of the largest actions to designate individuals and institutions in nearly four years.
Britain took the lead in May.
HTX, formerly known as Huobi, was founded in China in 2013. The report mentions that the platform reports a trading volume exceeding $3 trillion by 2025. The UK added it to its sanctions list in May of this year, alleging it facilitated the transfer of funds related to the Kremlin, involving more than $1.5 billion.
The UK also alleges that HTX provided services to A7. A7 issued the ruble-pegged stablecoin A7A5, a tool some experts believe was used by Russia to transfer funds.
HTX denies the allegations.
Two days before the EU action, blockchain intelligence firm TRM Labs claimed that HTX adjusted its on-chain wallet system after the UK sanctions and frequently rotated hot wallet addresses between TRON, Ethereum, BNB Smart Chain, and Solana, making it difficult to keep up with address screening in a timely manner.
HTX previously denied these claims, telling the media that these wallet activities were "routine platform operations for security reasons." Following the UK sanctions, HTX further stated that Huobi Global S.A. and the online HTX trading platform are separate entities, and that user funds are safe and operations are unaffected.
Additional information:The report also noted that the U.S. Treasury Department’s Office of Foreign Assets Control has not yet taken action against HTX, indicating that enforcement efforts surrounding the platform still vary across different jurisdictions.
