Blockchain intelligence firm TRM Labs has found that cryptocurrency exchange HTX repeatedly changes its wallet infrastructure across multiple blockchains, complicating efforts to enforce UK sanctions through traditional static address screening. The findings were detailed in a report released on July 21, 2026.
According to TRM Labs, HTX rotates its hot wallets and funding addresses across TRON, Ethereum, BNB Smart Chain, and Solana every few hours. This rapid cycling creates a constantly shifting on-chain footprint, making it difficult for compliance providers relying on fixed address lists to track the exchange’s activity. Ari Redbord, Global Head of Policy at TRM Labs, stated, “HTX is changing its wallets every few hours to stay a step ahead of screening built on static lists.”
The UK Foreign, Commonwealth and Development Office imposed sanctions on Huobi Global S.A., which now operates as HTX, on May 26, 2026, over allegations that it facilitated Russian sanctions evasion. The measures include an asset freeze and restrictions on payment processing, correspondent banking, trust services, and internet services. TRM Labs linked the wallet rotation pattern directly to the timing of those sanctions, suggesting it allows much of the exchange’s active infrastructure to remain outside static screening lists at any given moment.
HTX has rejected TRM’s characterization, asserting that the wallet changes are routine security operations common across the crypto industry and not an attempt to avoid regulatory screening. A spokesperson emphasized that regulatory compliance remains a priority and that the exchange follows applicable rules in all jurisdictions where it operates.
TRM Labs advocates for behavior-based monitoring as a more effective alternative. Instead of relying solely on known addresses, this approach analyzes transaction patterns and on-chain relationships to link new wallets to sanctioned entities almost in real time. The firm noted that companies depending only on static databases may overlook transactions connected to HTX.
The sanctions on HTX form part of a wider UK crackdown on financial networks accused of aiding Russia. Additionally, the Financial Conduct Authority initiated legal proceedings against HTX in February 2026 over alleged unlawful crypto promotions, a case that remains active. The wallet screening issue has already affected other platforms: FixedFloat, for instance, began reviewing or restricting transactions tied to historical Huobi links following the sanctions.
Separate blockchain research by Global Ledger has also identified billions of dollars in high-risk flows through HTX, including funds linked to Russia-related entities and darknet markets. The exchange continues to dispute the scope of the sanctions and insists that its operations are legally separate from Huobi Global S.A., though the UK Office of Financial Sanctions Implementation clarified that it considers HTX subject to sanctions due to ownership ties.
