Bybit flags HTX-linked transfers after UK sanctions

Bybit posted an advisory on May 27 saying transfers to or from wallets linked to HTX may trigger additional anti‑money‑laundering, compliance or risk‑control checks. The exchange told customers to avoid routing funds through HTX‑related addresses when funding Bybit accounts and to keep activity within local laws and platform rules.

The advisory came hours after the UK sanctioned Huobi Global S.A., a listed legal entity historically linked to the Huobi brand. The UK order includes asset‑freeze provisions, and exchanges and financial firms are reviewing procedures to reflect the new restrictions.

HTX drew a distinction between the sanctioned legal entity and the consumer platform that uses the HTX name. The exchange stated, “To clarify, the listed entity Huobi Global S. A. is distinct from the online HTX exchange.” Justin Sun, an advisor to Huobi Global, added that the relevant team will work with UK authorities to address any concerns.

Analysts highlighted the risk that the order’s asset‑freeze language could prompt stablecoin issuers or custodians to block funds on flagged wallets. Vitaly Gorbenko, chief executive of CoinKit, warned that issuers could potentially block assets and noted public data indicating HTX wallets may hold more than 100 million USDT. On‑chain tracker Arkham estimates HTX controls about $74 million in USDT.

Fedor Ivanov, analytics director at AML provider SHARD, said the UK designation formally binds only UK residents and entities but predicted banks and stablecoin issuers worldwide would tighten screening of HTX counterparties. Ivanov added that AML labels can propagate through compliance systems quickly, increasing the likelihood that firms outside the UK will treat HTX as higher risk.

Tether has previously frozen USDT on wallets flagged for regulatory or compliance reasons. Market participants are watching whether major stablecoin issuers, including Tether or Circle, will take action on wallets tied to the sanctioned entity.

Bybit’s advisory is among the first public steps by a major crypto exchange to explicitly restrict flows linked to HTX. Pending European anti‑money‑laundering rules expected in 2027 could affect how banks and crypto firms screen counterparties and handle assets connected to sanctioned groups.