Blockchain researchers warn HTX sanctions may blur crypto risk signals

Researchers say broad HTX tainting could freeze legitimate users and make compliance tools less useful for tracing illicit funds.

Blockchain researchers have raised concerns about the United Kingdom's sanctions against crypto exchange HTX, arguing that the move may have created broad collateral damage across the industry's compliance system.

In an X post, Galaxy Digital's head of research, Alex Thorn, said the UK adding “all of HTX” to its sanctions was “problematic” because the exchange has many legitimate users. Thorn pointed to differences in how stablecoin issuers decide when to freeze tokens, saying there’s a big divergence in enforcement practices.

Security researcher Taylor Monahan said in an X post that the HTX sanctions undermined years of work to encourage decentralized finance (DeFi) protocols to screen and block stolen funds. She argued that most HTX users are legitimate.

Read more