UK Sanctions Crypto Exchange HTX Linked to Sun Yuchen, Alleging Involvement in Russian Sanctions Evasion Network

The UK Foreign Office added Huobi Global SA to its sanctions list on Tuesday, accusing its operated cryptocurrency exchange HTX of participating in a financial network that helps Russia evade Western sanctions. Bloomberg reported that the UK charges the network has funneled back over $1.5 billion to the Kremlin.

The UK sanctioned a total of 18 entities in this instance, targeting what is known as the "A7" shadow financial network. The Foreign Office stated that A7 is a Kremlin-backed system specifically designed to bypass Western sanctions, finance Russian military procurement, and handle oil sale revenue to sustain its wartime economy.

According to the UK Foreign Office statement:

“As existing sanctions continue to take effect, the Kremlin increasingly turns to the dark web and shadow financial systems to evade legal restrictions.”

The Financial Times reported that the A7 payment company was set up by the Russian Ministry of Defense's Promsvyazbank at the end of 2024, mainly promoting cross-border fund flows through stablecoins and other tools. A7 claims in its promotional materials to handle up to 19% of Russia's foreign trade transactions, but this statement has not been independently verified.

Huobi Global is closely associated with Chinese entrepreneur and founder of Tron, Justin Sun, who claims to serve as an advisor for HTX. Crypto analysis firm Arkham Intelligence refers to him as the "majority shareholder" of the exchange, but spokespeople for Sun have denied that he is the owner of Huobi.

Following the event, the cryptocurrency exchange OKX issued a notice: If users have previously engaged in arbitrage trading between OKX and HTX, continuing to transfer funds between the two platforms after the UK's sanctions may trigger additional scrutiny of accounts by OKX.