HTX rotates wallets across blockchains after UK sanctions

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HTX rotates wallets post-sanctions

Highlights

TRM Labs reports HTX rotates hot wallets and funding addresses across TRON, Ethereum, BNB Smart Chain, and Solana every few hours since UK sanctions in May 2026.
TRM Labs highlights that address-based screening is now ineffective, advocating behavior-based attribution to identify sanctioned entities via onchain activity nearly as quickly as wallet rotations.
HTX remains operational despite UK Foreign, Commonwealth and Development Office sanctions in May 2026 and ongoing UK Financial Conduct Authority legal proceedings for alleged unlawful financial promotions.

TRM Labs details wallet rotation pattern

As reported by The Block, citing TRM Labs, HTX has been rotating hot wallets and funding addresses on regular cycles across TRON, Ethereum, BNB Smart Chain and Solana since UK authorities sanctioned the exchange in May 2026.

The blockchain intelligence firm says the exchange retires addresses every few hours, making static address-based screening largely ineffective. TRM Labs describes the exchange's onchain footprint as a continuous moving target, and Ari Redbord, the firm's global head of policy, says HTX is changing wallets every few hours to stay ahead of screening built on static lists.

TRM Labs says behavior-based attribution offers an alternative by identifying and linking newly created wallets to sanctioned entities through their onchain activity rather than through fixed wallet lists alone. The firm says this approach can update nearly as fast as HTX rotates new addresses.

UK enforcement pressure remains in focus

In May 2026, the UK Foreign, Commonwealth and Development Office sanctioned Huobi Global S.A., which has rebranded to HTX, over its alleged role in facilitating Russian sanctions evasion. TRM Labs says the exchange remains operational despite those sanctions.

The latest findings add to broader UK regulatory scrutiny of the platform. In February, the UK's Financial Conduct Authority said it began legal proceedings against HTX for allegedly publishing unlawful financial promotions.

The Block says it has reached out to HTX for comment. An HTX spokesperson said in May that regulatory compliance remains a top priority and that the company proactively monitors and strictly adheres to regulatory frameworks in all jurisdictions where it operates globally, including the UK.

In our earlier article on the UK’s fiscal challenges under the new government, we outlined how John Healey entered office facing intense market scrutiny over living costs support, defence funding and adherence to fiscal rules. We noted that credibility risks could rise if policymakers lean on short-term fiscal manoeuvres, off-balance-sheet structures or tax changes that weaken confidence in the UK’s economic framework.

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