TRM Labs Says HTX Is Swapping Wallets Every Few Hours to Dodge Sanctions Screening

HTX has been cycling through wallet addresses at an unusually fast pace since UK sanctions hit Huobi Global S.A. in May, according to a new analysis from blockchain intelligence firm TRM Labs. Ari Redbord, TRM's global head of policy, put it plainly: the exchange is "changing its wallets every few hours to stay a step ahead of screening built on static lists." That's not a neutral observation from a disinterested researcher, but more on that in a moment.

The UK Foreign, Commonwealth and Development Office sanctioned Huobi Global S.A. on the grounds that it was being used by Russia's A7 Network to circumvent existing sanctions targeting the country. HTX, owned by Justin Sun, responded by insisting that "the listed entity Huobi Global S.A. is distinct from the online HTX exchange." That line didn't hold up long. Court filings showed Huobi Global S.A. had claimed it "owns and operates HTX," and the company also held the US trademark for the HTX name.

Hidden reserves and a nameless custodian

Around the same time, HTX quietly reshuffled its proof-of-reserves page, moving funds that were already drawing scrutiny into a new category labeled "ThirdParty." The exchange tells users to "directly contact the third-party custodians" if they want to verify what's there, but has refused to tell Protos who those custodians actually are. It's a circular arrangement: trust us, ask someone we won't name.

HTX told The Block the wallet rotation reflects "routine, security-driven platform operations common across the industry" and rejected any suggestion otherwise. There's a wrinkle worth flagging, though. TRM Labs isn't a purely independent observer here. The firm is part of the T3 Financial Crime Unit alongside TRON, the blockchain Sun founded, and Tether, formed specifically to fight illicit use of USDT on the TRON network. TRM has business ties to Sun-connected entities even as it publishes findings about his exchange.

This article is for informational purposes only and does not constitute financial advice or an investment recommendation.