Justin Sun commented on the blocking of HTX on Binance: what is happening with user funds
The situation around HTX and Binance is heating up. HTX founder Justin Sun has made a public statement, claiming that the restrictions imposed by Binance apply exclusively to users in the United Kingdom and the European Union. At the same time, Binance's official notice contains no geographical clarifications—this is an important discrepancy that requires careful analysis.
Justin Sun's Comment
Sun issued a statement on Friday evening—just a few hours after Binance announced the block. He emphasized that he had personally discussed this matter with Binance representatives and that the measures affect only clients from the UK and the EU. According to him, HTX does not operate in these jurisdictions, and negotiations with British and European regulators are already underway.
"I discussed the topic with Binance, and this only concerns Binance users in the UK and the EU. Huobi itself does not operate in the UK or the European Union. Our negotiations with British and European regulators are already ongoing," he wrote.
Sun also assured that affected users can contact HTX support, and the exchange promises to resolve issues on a case-by-case basis.
Binance Restrictions and HTX's Position
However, Binance's notice does not mention any specific countries. The exchange addressed it to all users, warning that transactions with restricted platforms may be suspended for compliance checks. The list includes 11 platforms at once, and HTX is just one of them.
Sun's claim that HTX does not operate in the UK raises 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. Notably, HTX closed registration for new British users only after a lawsuit from the regulator.
Interestingly, the statement about negotiations with British authorities is confirmed. A moratorium is in effect at the High Court until August 25, and HTX is in talks with the FCA regarding illegal advertising. Sun did not specify which EU body the negotiations are being held with.
The timeline is extremely tight: Binance will cut off HTX on August 23—two days before the moratorium ends in London.
My analysis: The discrepancy between Sun's statement and Binance's official position creates uncertainty for users. I recommend exercising caution and not relying on verbal assurances—keep an eye on official updates from both exchanges. In such situations, it is better to err on the side of caution and withdraw funds to cold wallets before the restrictions take effect.