Britain's Financial Conduct Authority launched legal proceedings against HTX, a crypto exchange tied to Justin Sun, for allegedly promoting services illegally to UK users.
This first-of-its-kind action followed repeated ignored warnings since 2023. Regulators now seek blocks on HTX's social media and app store access in the UK.
The exchange, formerly Huobi, faces claims of criminal breaches under rules requiring authorized promotions. HTX continued ads on platforms like TikTok, X, and its website despite restrictions.
High Court filings in October 2025 targeted HTX entities and unnamed controllers. The FCA gained permission to serve papers internationally on February 4, 2026.
What Happened
HTX restricted new UK registrations after proceedings began, but existing users still access promotions. The FCA noted no guarantees these limits persist.
Regulators described HTX's structure as opaque, with failed engagement attempts. HTX sits on the FCA's Warning List, denying users ombudsman protections or fund recovery if it fails.
The agency requested social media firms block UK access to HTX accounts. It also asked Apple and Google to remove HTX apps from UK stores.
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Why It Matters
This case underscores enforcement gaps in crypto, where overseas firms often evade local rules. Data shows most firms complied post-2023 regime, but outliers like HTX persist.
Industry observers note rising complaints over misleading crypto ads. FCA data reveals over 1,000 unauthorized promotions removed since October 2023.
Kraken co-CEO Arjun Sethi criticized the regime as overly restrictive in late 2025, citing HTX's case. Such rules, he argued, slow transactions and limit products for UK users compared to US markets.
UK crypto promotion rules, effective October 2023, mandate risk warnings and suitability checks. Breaches carry criminal penalties, aiming to curb losses in volatile assets.
FCA enforcement has charged more individuals recently, concluding probes faster. This HTX action fits a pattern of targeting non-compliant global players.
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