Justin Sun commented on Binance's restrictions for HTX: are user funds protected or not?
HTX founder Justin Sun stated that the restrictions imposed by Binance apply exclusively to users from the United Kingdom and the European Union. However, Binance's official notice itself makes no mention of geographic targeting — this discrepancy requires close attention.
The situation has escalated ahead of the approaching August 23 deadline, when Binance plans to blacklist HTX. Sun was quick to reassure the public, emphasizing that the exchange is already in talks with UK and EU regulators about a global settlement. However, as an experienced analyst, I see more questions than answers here.
Justin Sun's Comment
Late Friday evening, just a few hours after Binance's announcement, Sun issued clarifications. In his statement, he noted: "I discussed this 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."
He also added that affected users can contact HTX support, and the exchange will help resolve issues on an individual basis.
Binance Restrictions and HTX's Position
Binance's official notice contains no mention of specific countries — it is addressed to all users. The exchange warned that transactions with restricted platforms may be suspended for compliance checks after the effective date. A total of 11 platforms were restricted, including HTX.
Sun's second statement raises even more doubts. 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 only closed registration for new British users after the regulator's 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 indeed in talks with the FCA regarding illegal advertising. However, 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 — just two days before the moratorium in London ends.
My analysis: The situation looks like a classic example of regulatory pressure, where Binance seeks to distance itself from problematic platforms. Despite Sun's assurances, the absence of geographic specifics in Binance's notice and FCA statistics on significant British traffic to HTX suggest that the consequences may be broader than stated. I recommend HTX users in the EU and UK to closely monitor developments and prepare alternative withdrawal routes in advance.