WikiBit Exchange Exit Risk Ranking Issue #2: Justin Sun’s HTX — Sanctioned by the UK, Blacklisted by Binance, and Slammed by Users with a 1.3 Rating

Introduction:

In the previous episode, we examined HashKey — the “compliance top student” of the crypto industry and its hidden problems.

This time, we are looking at a completely different type of exchange:

HTX.

If HashKey is a financial elite wearing a suit, then HTX is the crypto industrys “old-school veteran” wearing a colorful shirt and a thick gold chain.

Its predecessor, Huobi, was founded in 2013 and became one of Chinas earliest cryptocurrency exchanges. It survived the 9/4 crackdown, the 3/12 market crash, the FTX collapse, and countless other storms in crypto history.

It has experienced almost every major crisis in the industry and still survived. (HTX)

After being acquired by Justin Sun in 2022, the platform was renamed HTX, opening a new chapter in the “Justin Sun ecosystem.”

But here comes the question:

How can an exchange that has been sanctioned by the UK, received only a 1.3 rating on Trustpilot, and is constantly criticized by users for “being unable to withdraw funds” continue operating successfully？

Today, we will take it apart layer by layer.

1. Regulatory Compliance: What Kind of Exchange Is One That Has Been “Blacklisted” by the UK？

HTXs official website lists a long series of licenses and registrations.

However, the overall picture is:

Many licenses, but questionable regulatory strength.

The listed registrations and licenses include:

• Lithuania VASP registration (Virtual Asset Service Provider)
• Dubai VARA MVP provisional license (Virtual Asset regulatory approval)
• British Virgin Islands SIBA investment business license
• Gibraltar DLT license (obtained in 2018)
• Australia AUSTRAC digital currency exchange registration
• Pakistan PVARA No Objection Certificate (NoC)

(HTX)

Looks quite comprehensive, right？

But when you examine them carefully, most of these come from secondary regulatory jurisdictions.

Lithuania, Gibraltar, and the British Virgin Islands are all offshore or smaller regulatory jurisdictions.

Their regulatory strength is simply not comparable to major financial regulators such as:

• Hong Kong SFC;
• Singapore MAS.

HTX Regulatory Risk Assessment (Source: WikiBit)

The Real “Trump Cards” Are All Negative

First: UK FCA Lawsuit

In October 2025, the UK Financial Conduct Authority (FCA) filed legal proceedings against HTX, accusing the exchange of illegally promoting crypto services to UK consumers.

In February 2026, the High Court approved the FCAs request to serve legal documents on HTX outside the UK.

Second: UK Sanctions

On May 26, 2026, the UK government directly added HTX-related entity “Huobi Global S.A.” to its Russia sanctions list.

The UK accused HTX of providing financial services to sanctioned Russian entities and assisting in the transfer of more than $1.5 billion back to Russia.

This marked the first time the UK had applied sanctions measures specifically against a cryptocurrency exchange.

Third: EU Sanctions

In July 2026, the European Union officially sanctioned HTX, accusing it of allegedly providing financial services to cross-border payment companies linked to Russia.

Binance has announced that starting August 23, it will cut deposit and withdrawal channels connected to HTX.

Fourth: MiCA Non-Compliance

HTX is not registered with ESMA, has not applied for a MiCA CASP license, and does not have an EU-authorized entity.

In practice, the European market is essentially a “black market account” for HTX.

A one-sentence summary of HTXs licensing strategy:

It uses a pile of offshore “stickers” to decorate itself, but in the truly important markets — the UK and the EU — it carries almost entirely negative labels.

The Pakistani NoC is basically just an “entry ticket” and is far from being a full regulatory license.

Meanwhile, the impact of UK sanctions and FCA legal action is far greater than that of a hundred offshore registrations.

For users, the biggest risk is not necessarily that HTX will suddenly disappear.

The bigger risk is that the entire compliance ecosystem is closing its doors to HTX.

Binance, OKX, and other major exchanges have publicly announced that, due to UK and EU sanctions requirements, they will no longer process deposits and withdrawals originating from HTX.

Otherwise, user accounts may face mandatory restrictions or freezing.

How Did HTX Respond？

Two approaches:

First: Separation

HTX stated:“The entity sanctioned by the UK is Huobi Global S.A., which is a separate legal entity from the currently operating HTX exchange.”

Second: Denial

HTX emphasized:“Compliance is our absolute priority.”

But the problem is:

Blockchain risk-control systems from companies such as Chainalysis and OKLink have already synchronized sanction labels.

Many platforms have upgraded their compliance screening systems.

Even if HTXs explanation is accurate, once user funds move on-chain, they may already carry a “sanctions-related” label.

This is the most serious issue:

Once your funds have interacted with HTX, other platforms may no longer be willing to accept them.

Risk Rating: High Risk (Regulatory Level)

Being directly sanctioned by G7 countries represents one of the most serious regulatory crises an exchange can face.

Although HTX is actively attempting to separate itself from the sanctioned entity and deny wrongdoing, once a sanctions label is attached, removing it is extremely difficult.

The concern for users is not simply that HTX may disappear.

The bigger concern is that your funds could become permanently associated with a “sanctioned entity” label on-chain, making future transactions extremely difficult.

2. Account Freezes and Withdrawals: Reviews Delayed Until 2027, Accounts Frozen Over $7.5

HTXs withdrawal problems can no longer simply be described as “poor user experience.”

They are becoming a compliance crisis spreading across the entire industry.

Withdrawal Reviews Delayed Until 2027: Not a Joke, but Reality

A user posted a complaint in the HTX community:

They deposited 100,000 USDT, traded normally, and suddenly triggered risk controls.

The result:

Unable to withdraw;

Unable to log in;

No clear explanation provided.

The review timeline was pushed directly to 2027, with a warning that it could be delayed further.

Another user experienced an even more extreme situation:

Their account was frozen for more than eight months, and HTX never provided a satisfactory explanation.

The user repeatedly posted updates in the HTX community:

“Day 7”

“Day 9”

“Day 14”

“Day 15”

Every day serving as a reminder:

My money has already been locked for more than eight months.

A large number of complaints follow the same pattern:

Account frozen;

Withdrawal rejected;

Customer support unavailable.

One user reported that 60,000 USDT was frozen due to an “AML issue.”

The user submitted all requested materials:

On-chain deposit proof;

Wallet ownership video;

Transaction history.

More than three months later, the funds were still inaccessible.

The Most Controversial Move: A $7.5 USDT “Poisoning Attack” That Got Receivers Blocked

On August 18, 2026, several crypto industry participants claimed that their addresses on other exchanges had unexpectedly received small USDT transfers from wallets associated with HTX.

The amount was only $7.5.

Shortly after receiving the funds, their accounts were frozen.

A trader using the alias 0xZiye was among the first to post:

“HTX is aggressively sending small amounts of funds out, contaminating other addresses… My Coinbase received Justin Suns 7.5U poisoning transaction. Coinbase now says that if I cannot explain it clearly, they will close my account.”

This is known as a Dusting Attack:

A method where extremely small amounts of cryptocurrency are sent to large numbers of addresses.

The sender pays almost nothing.

But the recipient may face serious consequences.

The logic is simple:

After the UK sanctioned HTX in May, compliance systems at major exchanges began treating any assets associated with HTX as potentially “toxic assets.”

If you receive a 7.5 USDT transfer, the system may conclude:

“You have interacted with a sanctioned entity.”

Even if you never requested or accepted the transfer.

HTXs market representative Molly Fu responded:

“The platform absolutely did not engage in such behavior. It is either a misunderstanding or someone intentionally causing trouble.”

Justin Sun later posted that the poisoning allegations were completely fabricated.

On-chain records, according to his statement, showed that the 7.5 USDT transaction only flowed to Kraken, not Coinbase.

But the core problem remains:

Regardless of whether HTX actually initiated the transfers, the result is the same.

Once your address has any connection with HTX, other platforms may become unwilling to deal with you.

The root cause of HTXs withdrawal issues is not necessarily that the platform wants to steal user funds.

The real issue is that sanctions-related chain reactions are turning ordinary users into “hostages.”

Simply put:

Compliance backlash is being paid for by users.

What is the value of sufficient reserves？

What is the value of 46 consecutive months of Proof of Reserves (PoR)？

Your funds may be safe inside HTX.

But once they are connected with HTX, the entire crypto ecosystem may close its doors to you.

This is no longer just a question of:

“Can I withdraw my money？”

It has become:

“Your money has become a hot potato, and nobody wants to touch it.”

One-Sentence Summary:

HTX may allow withdrawals, but once your funds become associated with HTX, you may find yourself unable to enter the doors of other platforms.

Risk Rating: High Risk (User Experience Level)

The chain reaction caused by sanctions means:

Your money may be safe inside HTX.

But once it has any connection with HTX, the entire crypto world may shut you out.

3. Reserve Transparency: 46 Consecutive Months of Data — Impressive Numbers, But…

HTX has indeed made significant efforts in terms of reserve transparency.

The platform has continuously published Merkle Tree Proof of Reserves (PoR) reports for 46 consecutive months — one of the longest-running records in the industry.

As of August 1, 2026, the data shows:

• BTC: 103%
• ETH: 100%
• TRX: 106%
• HTX: 102%
• XRP: 102%
• DOGE: 100%
• SOL: 102%

The reserve ratios of all major assets have consistently remained above 100%.

According to HTXs 2025 annual report:

User USDT holdings increased from 695 million USDT to 1.765 billion USDT, representing an increase of approximately 150%.

However…

The problem is:

PoR reports are published by the platform itself, rather than verified through independent third-party audits.

Sufficient reserves do not mean the platform cannot encounter problems.

FTX also had proof-of-reserves before its collapse.

Moreover, HTXs biggest risk has never been:

“Insufficient assets.”

Its biggest risk is:

“Regulatory barriers cutting off the exit routes.”

Risk Rating: Low Risk (Reserve Level)

Based purely on reserve data, HTX has indeed performed well.

However, under a sanctions environment, even extremely strong reserves cannot solve the problem of:

“Funds being unable to leave the platform.”

4. Asset Strength: Impressive Numbers, But Behind Everything Is Justin Sun

HTX has some impressive statistics:

• Registered users: 58 million (January 2026 data)
• Annual trading volume: $3.3 trillion (up 39% year-over-year)
• Spot trading volume: Over 1.9 trillion USDT (up 30% year-over-year)
• Net capital inflows: $608 million
• Peak platform assets: $7.3 billion
• Zero security incidents reported

Based on these figures, HTX remains a top-tier global exchange.

In 2025, its market share increased by 2.06%, ranking first among major centralized exchanges.

But the footnote behind all of this is:

Justin Sun.

And this is both HTXs greatest asset and its greatest risk.

The key figure behind HTX is Justin Sun:

• Founder of TRON;
• Global advisor of Huobi HTX;
• CEO of BitTorrent.

After Justin Sun acquired Huobi in 2022, he renamed it HTX.

Under his leadership, HTX transformed from an “old-established exchange” into a hub for:

• Asset issuance;
• Liquidity distribution;
• Web3 project incubation.

Through HTX Ventures, the platform has incubated numerous Web3 projects.

Justin Sun himself has also appeared on the cover of the English edition of Forbes, becoming another Chinese entrepreneur after Jack Ma to receive this recognition.

But this is also where the problem lies:

Justin Sun himself is a major source of controversy.

In the crypto industry, “Justin Sun” is associated with labels including:

• Marketing genius;
• Master of attention;
• Endless controversy generator.

From TRON to USDD to HTX, almost every project associated with him has attracted significant debate and criticism.

The biggest risk for HTX is not insufficient assets.

It is the three words:

“Justin Sun.”

If something happens to Justin Sun one day —

whether regulatory, legal, or personal —

HTXs reputation could collapse instantly, regardless of how large its reserves are.

Risk Rating: Medium Risk (Asset & Team Level)

The data is impressive:

Large user base;

• High trading volume;
• Strong market presence.

HTXs fundamental strength cannot be ignored.

However, Justin Suns personal brand is a double-edged sword:

He brings traffic and attention.

But he also brings endless controversy and regulatory scrutiny.

5. Product Experience and Trading Depth: Large Scale, But Plenty of “Dirty Work”

HTXs product ecosystem is quite comprehensive:

Spot Trading

More than 500 tokens listed

Futures Trading

Over 200 trading pairs

Monthly Trading Volume

Approximately $1.4 trillion

Fiat Deposits and Withdrawals

Supports more than 20 fiat currencies, including:

USD

EUR

JPY

AED

HKD

TRY

Earn Products

Serving more than 600,000 users

Grid Trading

Growth rate reaching up to 352%

HTX is highly aggressive when it comes to listing assets.

In 2025, it listed 166 new assets, aggressively competing for early listings in sectors such as:

MEME coins;

AI-related projects.

However, this aggressive strategy also created many problems.

For example:

Too Many Altcoins

Among the 500+ listed tokens, many are low-liquidity “air coins.”

Trading mainstream assets may be fine.

But if you trade smaller altcoins:

Liquidity may be insufficient;

Slippage may become painful.

This aggressive operating strategy eventually contributed to regulatory problems.

After being sanctioned by the UK and EU, many platforms have already restricted or closed deposit and withdrawal channels connected with HTX.

In addition, some third-party platforms have rated HTXs liquidity as only “average.”

There are also concerns that some trading volume figures may be inflated.

Risk Rating: Medium Risk (Product Level)

HTX offers comprehensive products and massive trading volume.

However, sanctions-related chain reactions are gradually damaging its usability.

Furthermore, the large number of speculative altcoins makes the platform feel somewhat like:

“A casino where you can bet on anything — but you are not always sure who the dealer is.”

6. Real Community Feedback: Extremely Polarized

On the globally recognized independent consumer review platform Trustpilot, HTX has received a score of only:

1.3/5

This is among the lowest ratings among major crypto exchanges.

Complaints mainly focus on:

• Account freezes (ranging from tens of thousands to hundreds of thousands of USDT);
• Withdrawal reviews delayed for weeks or months;
• Customer service disappearing or providing meaningless responses;
• “Black box” risk-control operations (no explanation, no timeline).

Inside HTXs official community, supporters argue:

“PoR reserves remain above 100%, and the platform is operating normally.”

They encourage users to evaluate the situation rationally.

Risk Rating: High Risk (Community Level)

The 1.3 Trustpilot score did not appear out of nowhere.

Large numbers of complaints about:

“Unable to withdraw funds”

are themselves one of the most serious warning signals.

No matter how strong the reserves are.

No matter how large the trading volume is.

If users cannot access their money, everything else becomes meaningless.

7. Overall Exchange Exit Risk Assessment

Overall Rating: Medium-High Exit Risk

Will HTX “run away”？

Most likely, no.

A yearly trading volume of $3.3 trillion, 58 million users, and 46 consecutive months of Proof of Reserves (PoR) are not things that can be built overnight.

Although Justin Sun is highly controversial, he is not the type of person who would simply “take the money and disappear.”

His business empire is too large.

The cost of an exit scam would be far greater than the potential benefit.

However:

“Not running away” does not mean “your money is safe.”

The biggest risks facing HTX right now are not:

“Insufficient assets.”

They are:

1. UK Sanctions — A National-Level “Blacklisting Order”

The UK sanctions represent a major regulatory blow.

Binance and OKX have already cut deposit and withdrawal channels related to HTX.

Other platforms are likely to follow.

Your funds may still be inside HTX, but getting them out could become increasingly difficult.

2. “Sanctions-Related” Address Labels

Even if you successfully withdraw funds from HTX, your wallet address may still become associated with sanction-related labels.

Other platforms may hesitate or refuse to accept your funds.

3. User Experience Collapse

A 1.3 Trustpilot score is not something to ignore.

Large numbers of users have reported:

Frozen funds;

Withdrawal difficulties;

Reviews delayed until 2027.

4. Justin Suns Personal Risk

Justin Sun himself is HTXs biggest “single point of failure.”

If he remains unaffected:

HTX remains stable.

If something happens to him:

HTX could suffer severe consequences.

Recommendations for New and Existing Users

For New Users

Dont go there.

Seriously.

If an exchange has been sanctioned by G7 countries, why choose it？

There are hundreds of other exchanges available globally.

If you insist on using HTX:

Be mentally prepared:

Your funds may be easy to deposit but difficult to withdraw.

Start with a small test:

Deposit → Trade → Withdraw

Only consider larger amounts after confirming the full process works smoothly.

Be aware of address contamination risks

Funds withdrawn from HTX may potentially be flagged by other platforms.

It is recommended to:

Use a brand-new, independent wallet address to receive HTX withdrawals;

Avoid mixing HTX-related funds with your main wallet.

Do not put all your eggs in one basket

This advice applies to every exchange.

But it is especially important for HTX.

For Existing Users

Evaluate your exposure

If your HTX holdings exceed 10% of your total assets, consider gradually reducing your position.

Test withdrawals now

Try withdrawing a small amount immediately.

If successful:

You are temporarily safe.

If unsuccessful:

It is better to discover the problem sooner rather than later.

Monitor sanctions developments

The UK sanctions may only be the beginning.

The EU and the United States could potentially follow.

If more jurisdictions join, HTXs situation may become even more difficult.

Prepare an “escape route”

Make sure you have:

Accounts on at least two other exchanges;

Completed KYC verification.

If HTX encounters serious problems, you will still have alternative options.

Be cautious with the HSK token

Platform tokens are highly tied to the fate of the exchange.

When the platform succeeds:

The token benefits.

When the platform faces trouble:

The token usually suffers first.

Final Recommendation

Who is HTX suitable for？

High-risk investors who:

Are deeply connected with the Justin Sun ecosystem;

Are willing to accept regulatory uncertainty;

Are looking for high-return opportunities in speculative altcoins.

Who is it NOT suitable for？

Almost everyone else.

Next Episode Preview:

WikiBit Exchange Exit Risk Ranking Issue #3 — UZX Exchange. Stay tuned!

Risk Disclaimer:

This article represents personal analysis only and does not constitute investment advice.

Cryptocurrency investment involves risks. Please conduct thorough research before entering the market.

This article was updated on August 19, 2026. For the latest information, please verify details through multiple sources.