TLDR
- TRM Labs says HTX rotates wallet addresses across TRON, Ethereum, BNB Smart Chain, and Solana.
- The report claims some wallet addresses change every few hours, reducing the effectiveness of static sanctions screening.
- UK authorities sanctioned Huobi Global S.A., now known as HTX, in May 2026.
- British officials linked the exchange to alleged Russian sanctions evasion activity.
- TRM Labs recommends behavior-based attribution to identify newly created wallets through transaction patterns and fund flows.
HTX has repeatedly changed wallet addresses across four blockchains, according to a new TRM Labs report. The firm claims the exchange uses rapid wallet rotation to weaken sanctions screening after recent United Kingdom restrictions. HTX rejects that conclusion and says the changes reflect routine security operations used across the cryptocurrency industry.
HTX Replaces Wallets Across Four Blockchains
TRM Labs said HTX regularly replaces hot wallets and funding addresses across several major blockchain networks. The reported activity covers TRON, Ethereum, BNB Smart Chain, and Solana, creating a frequently changing transaction footprint. Researchers said some addresses remain active for only several hours before the exchange retires and replaces them.
The firm argues that these changes reduce the value of screening systems built around fixed address lists. Such systems may flag known wallets, but newly created addresses can remain unidentified during their early activity. Therefore, repeated replacements can delay links between fresh wallets and previously identified exchange infrastructure.
Ari Redbord, TRM Labs’ global head of policy, described the process as an effort to outpace static screening. “HTX is changing its wallets every few hours to stay a step ahead of screening built on static lists.” The report said the pattern creates a moving onchain footprint that requires faster attribution methods.
UK Sanctions Increase Regulatory Pressure
The United Kingdom sanctioned Huobi Global S.A. in May 2026, after the company had rebranded as HTX. The Foreign, Commonwealth and Development Office linked the entity to alleged activity supporting Russian sanctions evasion. British authorities imposed the restrictions as part of wider measures targeting financial networks connected with Russia.
TRM Labs said HTX remained active after the designation and continued using rotating blockchain addresses. The report linked the timing of these operational changes with the need for improved sanctions monitoring. However, it did not publish evidence showing that every replaced address directly handled restricted transactions.
Pressure also extends beyond sanctions enforcement because British regulators have raised separate concerns about financial promotions. The Financial Conduct Authority began legal proceedings in February over allegedly unlawful promotional activity. That case adds another regulatory challenge for HTX within the United Kingdom market.
Exchange Disputes Evasion Allegations
An HTX spokesperson said the wallet activity reflected ordinary security procedures rather than sanctions avoidance. The spokesperson called the practices common across the industry and rejected the report’s interpretation.
“We categorically reject any characterization implying otherwise and have no further comment,” the representative said.
HTX previously said compliance remained a top priority across every jurisdiction where it operated. It also said it monitored regulatory requirements and followed applicable rules, including those in Britain. Those statements directly conflict with TRM Labs’ assessment of the wallet rotation strategy.
