We found HTX’s reserves at Poloniex

HTX’s situation has appeared increasingly precarious as both the European Union Council and the United Kingdom’s Foreign, Commonwealth, & Development Office have chosen to sanction the exchange.

Since then, it’s made some big changes to how it manages users’ reserves.

Its June proof of reserves report was the first that acknowledged that it had moved huge swaths of its reserves to an undisclosed “ThirdParty.”

Read more: HTX misrepresents Huobi Global S.A. after UK sanctions

HTX claims on its website that you can verify these balances by reaching out to the custodian; unfortunately, it doesn’t tell users who that custodian is. As a result, Protos has been unable to verify most of those balances.

Further complicating this, TRM Labs, a blockchain intelligence firm, released a report in which it detailed how HTX has begun churning through its wallets at a prodigious rate.

Ari Redboard, the global head of policy for TRM, described this behavior as an attempt “to stay a step ahead of screening built on static lists.”

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