Justin Sun commented on Binance's restrictions for HTX: what is really happening with user funds
HTX founder Justin Sun has publicly responded to recent restrictions imposed by Binance on his exchange. Contrary to popular belief, he claims the block only affects users in the United Kingdom and the European Union, not the global client base.
This statement came on Friday evening, just a few hours after Binance announced it had blacklisted HTX. Notably, Binance's official notice did not specify any geographic restrictions—it was addressed to all users without exception.
Details of Sun's statement
In his comment, Sun emphasized that he had already held talks with Binance representatives. He stated: "I discussed the topic with Binance, and it only concerns Binance users in the UK and EU. Huobi itself does not operate in the UK or the European Union. Our negotiations with British and European regulators are already underway."
Sun also added that affected users can contact HTX support, and the exchange will help resolve issues on a case-by-case basis.
Where the statement diverges from the facts
However, my analysis shows that Sun's second claim raises serious questions. The UK Financial Conduct Authority (FCA) reports that in 2023, the HTX website was visited 4.6 million times from the UK—ranking sixth among crypto companies in British traffic. HTX only closed registration for new British users after a regulator lawsuit.
The claim about negotiations with British authorities is confirmed. A moratorium is in effect at the High Court until August 25, and HTX is already in talks with the FCA regarding illegal advertising. However, Sun did not specify which EU body the negotiations are with.
The timeline is extremely tight: Binance will cut off HTX on August 23—two days before the moratorium in London ends.
Expert commentary: The situation looks like a classic example of regulatory pressure escalating into an inter-exchange conflict. Despite Sun's optimistic statements, the lack of geographic specifics in Binance's official notice is concerning. I recommend that HTX users, especially those in the EU and UK, closely monitor developments and plan ahead for withdrawing funds if the restrictions turn out to be broader than stated.