HTX moves $1.3B reserves to third party amid UK sanctions; exchanges flag HTX-linked transfers

HTX, a crypto exchange owned by Justin Sun, transferred $1.3 billion of its reserve funds to an undisclosed third-party custodian following UK sanctions accusing it of aiding Russian entities. This move likely aims to protect legitimate users from having their funds frozen due to increased government scrutiny. Several exchanges, including Binance, Bybit, OKX, and Hyperliquid, have started banning transfers linked to HTX, affecting both guilty and innocent users. Despite these challenges, HTX maintains it has full reserves backing user assets and recently saw strong capital inflows.