UK regulator sues crypto exchange HTX over unlawful promotions

Synopsis

Britain's markets regulator has filed a lawsuit against HTX, a global crypto exchange advised by Chinese entrepreneur Justin Sun, accusing it of unlawfully promoting crypto asset services to UK consumers.

Britain's markets regulator has filed a lawsuit against HTX, a global crypto exchange advised by Chinese entrepreneur Justin Sun, accusing it of unlawfully promoting crypto asset services to UK consumers.

The Financial Conduct Authority said on Wednesday it had launched civil proceedings in London's High Court against HTX, formerly known as Huobi, for breaching Britain's financial promotions regime. HTX is not authorised to operate in Britain, the FCA's website shows.

"This action is part of our commitment to protect consumers and uphold the integrity of UK financial markets," an FCA spokesperson said, declining to comment further.

Representatives for HTX did not immediately respond to a request for comment.

HTX ADVISED BY CHINESE ENTREPRENEUR JUSTIN SUN

HTX was founded in 2013 and names Sun as a global adviser. Sun is a prominent backer of the Trump family's crypto venture World Liberty Financial, having spent at least $75 million on the project's crypto tokens.

A wallet labelled "SUN", identified by blockchain analysts as belonging to HTX, was also the top holder of U.S. President Donald Trump's "$TRUMP" memecoin.

The FCA, which says it wants to develop a competitive and sustainable cryptoasset regime, introduced new rules in 2023 for firms promoting crypto assets. They need authorisations and have to register with the FCA under money laundering regulations.

However, HTX is currently on the FCA's warning list, which names companies that consumers should avoid dealing with.

The FCA's case has been filed against Huobi Global and four groups listed as "persons unknown" to cover individuals such as the owners, operators and heads of promotions at the business.

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