Justin Sun commented on the blocking of HTX on Binance: what is really happening with user assets
HTX (formerly Huobi) founder Justin Sun has publicly responded for the first time to Binance's recent decision to add his exchange to a "blacklist." According to him, the restrictions apply exclusively to users from the United Kingdom and the European Union, not the global client base.
This statement came on Friday evening — just a few hours after Binance officially announced it would block operations with a number of platforms, including HTX. Sun was quick to reassure the community, emphasizing that the issue is local in nature and does not affect most traders.
"I have already discussed this matter with Binance. The restrictions apply only to users from the UK and the EU. Huobi itself does not operate directly in these markets. At the same time, we are already in talks with British and European regulators," Sun wrote on social media.
Discrepancies in official statements
However, upon closer inspection, the wording raises questions. Binance's official notice contains no mention of geographic targeting — the restrictions are addressed to all users without exception. The exchange warned that operations with "non-compliant" platforms may be suspended for review after August 23. In total, 11 crypto platforms were affected by the restrictions.
Moreover, Sun's claim that HTX does not operate in the UK contradicts data from the local regulator, the FCA. According to a report from the Financial Conduct Authority, the HTX website was visited from the UK 4.6 million times in 2023 — the sixth-highest figure among all crypto companies in terms of British traffic. Registration for new users was only closed after a lawsuit from the regulator.
Negotiations with regulators
Sun confirmed that negotiations with British authorities are indeed underway. A moratorium is in effect at the High Court in London until August 25, and HTX is actively discussing issues related to illegal advertising of its services with the FCA. At the same time, the exchange founder did not specify which European regulator consultations are being held with.
It is worth noting the extremely tight timeline: Binance will disconnect HTX on August 23 — just two days before the moratorium in London expires. This creates additional pressure on the exchange and its management.
My analysis: The situation looks ambiguous. On the one hand, Sun is trying to minimize reputational damage by localizing the problem. On the other hand, FCA data and Binance's wording point to a more systemic nature of the restrictions. In the coming days, the market will be closely watching how events unfold, especially how HTX resolves issues with British users and their assets. I recommend that traders using both exchanges carefully review their positions before August 23.