HTX Denies Involvement in Disputed Microtransfers Amid Compliance Restrictions

HTX, a major cryptocurrency exchange, has denied any involvement in a series of disputed microtransfers that took place on August 20. The transfers, worth up to $4.2 million, were sent from addresses labeled as connected to HTX and caused compliance restrictions at Kraken and other exchanges.

According to HTX's internal review, no official company account initiated the transfers. Instead, the exchange suggested that affected users may have independently sent the transfers while trying to protest or test Kraken's restrictions.

Kraken has confirmed that it restricts transfers associated with Huobi or HTX due to U.K. sanctions. The exchange said that U.K. government sanctions require it to restrict funds transferred from Huobi into Kraken customer accounts.

HTX disputed the designation's application to its exchange, arguing that Huobi Global S.A. was distinct from the online platform and that its operations remained unaffected. However, the U.K. Office of Financial Sanctions Implementation rejected this distinction, considering HTX to be owned by Huobi Global under U.K. sanctions rules.