UK Sanctions HTX Crypto Exchange for Helping Russia Evade Western Restrictions

TLDR

• The UK has sanctioned crypto exchange HTX (formerly Huobi Global) for allegedly helping Russia evade Western sanctions.
• The sanctions package covers 18 entities and individuals linked to Russia’s “illicit financial infrastructure.”
• For the first time, the UK applied Regulation 17A of its Russia sanctions regime to crypto exchanges, a tool previously used only against banks.
• The targeted A7 payments network is accused of moving over $90 billion last year to support Russian military procurement.
• UK financial firms and crypto service providers must now freeze funds and trace blockchain transactions linked to the sanctioned entities.

UK authorities have sanctioned cryptocurrency exchange HTX and 17 other entities for allegedly helping Russia circumvent Western restrictions tied to its war in Ukraine. The move marks a first for British financial regulators, who applied banking-style sanctions to crypto exchanges for the first time.

What the Sanctions Cover

The UK Foreign, Commonwealth & Development Office named 18 entities and individuals in the package, including HTX (formerly Huobi Global), Rapira Group, Aifory, Arvix, and Bitpapa. Blockchain analytics firm Elliptic said HTX had roughly $3.3 trillion in trading volume last year.

Also sanctioned was the operator of the USDKG gold-backed stablecoin, a Kyrgyzstan-linked company called Open Joint Stock Company “Virtual Asset Issuer.” Several individuals were named, including Sergey Mendeleev, Igor Gorin, Irina Akopyan, and Israeli national Liran Cohen.

HTX responded by saying regulatory compliance is its “absolute top priority” and that it monitors and adheres to regulatory frameworks in all jurisdictions where it operates.

The A7 Network and New Compliance Rules

A central focus of the package is the A7 payments network, which UK officials say processed proceeds from Russian oil sales and helped fund military procurement. The network is accused of moving more than $90 billion last year.

The UK applied Regulation 17A of its Russia sanctions regime to the designated crypto exchanges. This rule had previously only been used against sanctioned banks.

Under the new rules, UK financial firms and crypto service providers cannot maintain correspondent relationships with the named entities. They may also be required to freeze funds and trace blockchain transactions connected to those platforms.

Elliptic warned that compliance checks could extend beyond direct counterparties to wallets and exchanges appearing anywhere in a transaction chain, across multiple blockchain “hops.”

HTX had already been in regulators’ sights. In 2025, the UK’s Financial Conduct Authority opened legal proceedings against the exchange for illegal crypto promotions on platforms including TikTok, X, Facebook, Instagram, and YouTube.

Russia has faced sanctions from the UK, EU, and other countries since launching its military campaign in Ukraine in 2022. In April 2026, the European Commission introduced crypto-related sanctions targeting stablecoins like A7A5 and digital asset operators tied to Belarus.

Separately, Russian lawmakers have been advancing legislation that could impose criminal penalties on unlicensed digital asset services and require registration with the country’s central bank.

Elliptic noted that other regulators are likely to watch closely as Britain tests this new model for applying traditional financial sanctions to digital asset markets.

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