Crypto exchange HTX has been rotating wallets across four blockchains to avoid sanctions screening since May, according to blockchain intelligence firm TRM Labs, which released a report on Tuesday. The wallet rotation practice is designed to evade detection following UK authorities' sanctions against the platform. In May 2026, the UK Foreign, Commonwealth and Development Office sanctioned Huobi Global S.A., which rebranded to HTX, for its alleged role in facilitating Russian sanctions evasion. Despite the sanctions, TRM Labs said HTX has remained operational, with the practice turning the exchange's onchain footprint into "a continuous moving target."
HTX Rotates Wallets Every Few Hours Across Four Blockchains
HTX has been rotating hot wallets and funding addresses on regular cycles across TRON, Ethereum, BNB Smart Chain, and Solana, according to TRM Labs. The exchange retires addresses every few hours, leaving static address-based screening largely ineffective, the blockchain intelligence firm said. "HTX is changing its wallets every few hours to stay a step ahead of screening built on static lists," said Ari Redbord, global head of policy at TRM Labs. The practice makes it difficult for traditional address-based screening tools to keep up, TRM Labs stated in its report.
TRM Labs Proposes Behavior-Based Detection Method
TRM Labs suggested that behavior-based attribution can identify and link new wallets to sanctioned entities based on their onchain activity rather than relying on static wallet lists. "When an entity spins up a new wallet, behavior-based attribution recognizes it and ties it back to the designated entity as it comes online, updating nearly as fast as HTX rotates," the company said. This approach addresses the limitations of static address-based screening when dealing with rapidly rotating wallet addresses.
UK Regulatory Actions Against HTX
In February, the UK's Financial Conduct Authority began legal proceedings against HTX for allegedly publishing unlawful financial promotions. An HTX spokesperson previously said in May that regulatory compliance remains a "top priority," adding: "We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK." The Block has reached out to HTX for comment on the TRM Labs report.
FAQ
What did TRM Labs report about HTX's wallet practices?
TRM Labs reported on Tuesday that HTX has been rotating wallets across four blockchains—TRON, Ethereum, BNB Smart Chain, and Solana—to avoid sanctions screening since May. The exchange retires addresses every few hours, making static address-based screening largely ineffective.
Why did the UK sanction HTX?
In May 2026, the UK Foreign, Commonwealth and Development Office sanctioned Huobi Global S.A., which rebranded to HTX, for its alleged role in facilitating Russian sanctions evasion. Despite these sanctions, TRM Labs said HTX has remained operational.
What solution does TRM Labs propose for tracking HTX wallets?
TRM Labs suggested behavior-based attribution, which identifies and links new wallets to sanctioned entities based on their onchain activity rather than relying on static wallet lists. This method can recognize new wallets and tie them back to designated entities as they come online.
