HTX keeps changing wallets after UK sanctions, TRM Labs says

Crypto exchange HTX has repeatedly changed its wallet infrastructure since the UK imposed sanctions linked to the platform in May, according to blockchain intelligence firm TRM Labs.

In a July 21 report, TRM said HTX regularly retires hot wallets and funding addresses across TRON, Ethereum, BNB Smart Chain and Solana. The firm claims the changes allow much of the exchange’s active infrastructure to remain outside static sanctions screening lists at any given time.

HTX disputes that account. A spokesperson said the wallet activity identified by TRM “reflect[s] routine, security-driven platform operations common across the industry.” The exchange rejected any suggestion that the changes serve another purpose.

TRM says HTX creates a moving target for screening tools

TRM said HTX started restructuring its onchain infrastructure after UK authorities sanctioned Huobi Global S.A. on May 26. According to the intelligence firm, individual addresses can remain active for only a few hours before HTX moves activity to new wallets.

Ari Redbord, TRM Labs’ global head of policy, described the process by saying, “HTX is changing its wallets every few hours to stay a step ahead of screening built on static lists.” TRM said this pattern can make traditional screening methods less effective because companies relying only on fixed lists may not identify newly created addresses quickly enough.

The firm recommends behavior-based monitoring instead. This approach studies how wallets interact onchain and links new addresses to known entities based on transaction patterns. According to TRM, such systems can identify newly created HTX wallets as they become active rather than waiting for compliance teams to add each address manually.

However, HTX has rejected the suggestion that its wallet management practices show an attempt to bypass sanctions controls. The exchange previously said regulatory compliance remains a priority and that it follows rules in jurisdictions where it operates.

UK sanctions added to earlier regulatory pressure on HTX

The UK designated Huobi Global S.A. on May 26 under its Russia sanctions regime. The official sanctions listing includes an asset freeze and restrictions involving payment processing, correspondent banking, trust services and internet services.

UK authorities said they had reasonable grounds to suspect Huobi Global provided financial services connected to Russia-linked entities, including the A7 network. As crypto.news previously reported, the measures formed part of a wider UK action targeting financial and crypto networks accused of helping Russia bypass restrictions.

HTX initially disputed the reach of the sanctions. As crypto.news reported, the exchange argued that Huobi Global S.A. was legally separate from its operating platform. The UK Office of Financial Sanctions Implementation later clarified that it considers the HTX exchange subject to UK financial sanctions because of its ownership by Huobi Global S.A.

The sanctions also followed earlier action by the Financial Conduct Authority. In February, the FCA announced legal proceedings against HTX over alleged unlawful crypto promotions to UK consumers. The regulator said HTX had continued publishing promotions through its website and social media after earlier warnings.

The FCA’s case remains active. Its public case page shows that the proceedings continued through June, when the High Court issued another order connected to the case.

Wallet screening becomes part of a wider sanctions dispute

TRM’s latest findings add another layer to the disagreement over how companies should identify activity linked to sanctioned crypto platforms. Static screening systems depend on known wallet addresses. Rapid wallet changes can make those lists outdated before compliance providers distribute new information, according to TRM.

The issue has already affected crypto users outside HTX. FixedFloat began reviewing or restricting some transactions with historical links to Huobi after the UK action. The case raised questions over how screening providers should handle funds that passed through an exchange long before sanctions took effect.

Separate blockchain research has also examined HTX’s transaction history. As previously reported, Global Ledger identified billions of dollars in flows it classified as high risk, including transactions connected to Russia-linked entities and darknet markets. HTX has challenged claims surrounding its connection to the UK-sanctioned Huobi entity.

For now, TRM says it continues to track HTX’s changing wallet infrastructure. The UK sanctions remain in effect, while HTX maintains that the wallet rotations cited in the report form part of normal security operations rather than an effort to bypass screening.