TRM claims HTX is rotating wallets to ‘stay ahead of screening’

Blockchain intelligence firm TRM Labs has claimed in a new analysis that Justin Sun-owned HTX has been “rotating its wallet infrastructure on a rapid cycle” following sanctions issued by the UK Foreign, Commonwealth, and Development Office (FCDO) against Huobi Global S.A.

The FCDO sanctions, which landed in May, claimed that Huobi Global S.A. was being used by the A7 Network in Russia to bypass sanctions meant to target Russia.

HTX quickly claimed that “the listed entity Huobi Global S. A. is distinct from the online HTX exchange.”

Read more: UK sanctions HTX for alleged Russian sanctions violations

However, this wasn’t the whole story, as Huobi Global S.A. owned the United States trademark for HTX, and Huobi Global S.A. had filed documents in court that claimed that it “owns and operates HTX.”

Following this, HTX took its already problematic reserves and hid them in a new category on its proof-of-reserves called “ThirdParty.”

HTX has been unwilling to disclose to Protos what custodian is behind this new arrangement, despite claiming on its proof-of-reserves page that users should “directly contact the third-party custodians” to verify the reserves.

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