The UK’s Financial Conduct Authority has launched legal action against several entities linked to HTX, a prominent cryptocurrency exchange. HTX, which has been linked to Justin Sun and the Trump family, will be sued for illegal asset promotion.
The UK Financial Conduct Authority has launched legal action against the entities that make up the HTX digital asset exchange. The FCA has previously issued warnings about the use of markets and targeted exchanges for illegal asset promotions.
HTX (formerly known as Huobi) is said to have ties to cryptocurrency founder Justin Sun and the Trump family. However, Son is not named among the defendants.
Regulators did not provide details about the nature of the lawsuit or which companies were affected. So far, HTX is the main exchange. 1 dollar Stablecoins are in the initial expansion stage with new listings.
“The FCA has launched civil proceedings in the High Court against global cryptocurrency exchange HTX for illegally promoting crypto-asset services to UK consumers in breach of the UK Financial Facilitation Regime. ” The FCA stated: statement For Bloomberg.
The financial regulator explained that its main motivation was consumer protection and maintaining standards in the UK financial markets.
UK regulator claims HTX is illegally targeting domestic investors
UK regulators allege that HTX or agents of the exchange offered crypto services and assets to UK consumers. The exchange and its associated marketing team targeted these customers in a manner that contravened the UK financial promotion regime.
HTX reportedly ran promotions on various social media platforms. The FCA did not provide details about which assets or services were being promoted or how they were targeting UK-based investors.
HTX has been on the FCA’s warning list since 2023, urging consumers to avoid replacing it. The exchange is a step back as one of the smaller markets, with daily trading volume of about $4.6 billion.
market trust score 9/10 HTX is still considered a risk for UK-based investors, according to Coingecko tracking. The FCA did not give any specific reasons for avoiding HTX, other than that the market is not properly registered in the UK.
HTX provides services to other crypto projects
Justin Sun owning HTX means that crypto projects are looking to him for partnerships and special programs through the exchange.
HTX has an extensive rewards program for staking assets, including stablecoins. The exchange trades the USD1 stablecoin issued by the Trump family’s crypto fund, World Liberty Fi.
exchange is at most 20% APY for some assets, around 15% for stablecoins. HTX also handles World Liberty Fi trading pairs (WLFI) and Official Trump (TRUMP) were also previously part of that rewards program.
TRON Network also aims to position itself as a platform for high-profile assets. TRON has also been performing periodic TRX burns to support the price of its native token, maintaining the $0.31 level despite the market downturn.
