- The FCA slapped HTX, an exchange linked to Tron founder Justin Sun, with an enforcement action for illegal promotion of crypto services to UK customers.
Justin Sun just can’t seem to find a break from controversy lately. Fresh from his disgruntled ex-girlfriend’s allegations of rigging Tron (TRX) trades during the token’s early days on Binance, his exchange, HTX (formerly Huobi), has landed in the crosshairs of UK regulators.
On Tuesday, the UK’s Financial Conduct Authority (FCA) announced that it has begun legal proceedings against HTX. According to the regulator, the global crypto exchange owned by Sun has been illegally promoting its crypto services in the UK, an act considered a criminal offense.
HTX Repeatedly Ignoring the FCA’s Inquiries and Warnings
The FCA stated that it had previously issued warnings to HTX about its illegal practices. However, the company allegedly ignored all efforts to cease what it has been doing. The regulator accused HTX of continuously violating the rules by promoting its crypto services on its website and social media platforms, including X, Facebook, TikTok, Instagram, and YouTube.
Additionally, the FCA claimed that HTX “operates an opaque organizational structure.” It highlighted that the platform lacked transparency about the owners and operators of its website. Again, all its attempts to get answers from the company about the subject have been disregarded. So far, Forbes only identified Sun as the sole owner of the exchange.
As a result of its non-compliance and supposedly uncooperative stance, the FCA requested social media companies to block all accounts related to HTX and its operations in the UK. It included a ban on all apps linked to the company on Google Play and Apple’s App Store within its jurisdiction.
The FCA Caution’s Old HTX Users
The FCA said HTX had already halted UK residents from signing up for new accounts on its platform amid the ongoing legal proceedings. Still, old users can access its services.
The agency advised UK residents who continue using HTX that they may lose their funds if the platform goes out of business. It reminded them that the Financial Ombudsman Service (FOS) will not entertain complaints from individuals who continue to use HTX or other companies on its warning list.
On the other hand, the regulator never mentioned any potential criminal liability under the law for customers who are engaging with HTX or other institutions of a similar nature, aside from the possibility of losing all their funds and waiving their right to file a protest with the FOS.
