The United Kingdom’s Financial Conduct Authority (FCA) has taken a significant step by initiating a lawsuit against the cryptocurrency exchange HTX, which is owned by the controversial investor Justin Sun. The FCA alleges that HTX has violated UK financial promotion regulations.
On Wednesday, the FCA revealed that it has filed civil proceedings in London’s High Court against HTX, previously known as Huobi. The exchange is accused of breaching Britain’s financial promotions regime. According to the FCA’s official statements, HTX is not authorized to operate within the UK, raising concerns about its compliance with local regulations.
HTX Remains on FCA’s Warning List
A spokesperson for the FCA emphasized the regulator’s commitment to consumer protection and the integrity of the UK financial markets. “We have seen crypto firms respond positively to our financial promotions rules and regulations. However, we will not hesitate to take action against firms that appear to breach our rules,” the spokesperson stated.
The legal filings name defendants including “persons unknown” who are currently managing promotions on behalf of HTX across various social media platforms. This broad approach indicates the FCA’s determination to tackle potential violations comprehensively.
Despite positive regulatory changes in the UK following the US’s leadership in establishing a new framework for digital assets, HTX has been listed among the Financial Conduct Authority’s unauthorized firms since October 2023. The FCA has consistently advised consumers against engaging with the exchange.
Interestingly, the FCA has been accelerating the approval process for crypto applications, aiming to create a regulatory environment that is more favorable for cryptocurrencies. Since April of this year, five firms have received approval to operate in the UK, a notable increase that reflects the evolving landscape.
Under UK law, firms marketing crypto asset services to consumers, including those based overseas, must register with the FCA to comply with money-laundering regulations. This regulatory framework was further reinforced in October 2023, when the FCA introduced new rules governing the promotion of crypto assets, aligning their marketing with other financial promotions.
Justin Sun’s Latest Moves in Crypto
Founded in 2013 and registered in the Seychelles, HTX claims to have over 47 million registered users globally, with more than nine million identified as active trading users. This impressive user base underscores the exchange’s significant presence in the crypto market.
Despite his controversial history, which includes a prominent role in the Trump family’s crypto ventures, Justin Sun — a billionaire Chinese entrepreneur and the founder of the decentralized blockchain platform Tron (TRX) — acquired HTX in 2022. Sun’s involvement in the crypto space continues to attract attention.
Sun has notably backed President Donald Trump’s decentralized finance (DeFi) platform World Liberty Financial (WLFI), investing approximately $90 million in Trump-related tokens. Additionally, a wallet labeled “SUN,” identified by blockchain analysts as belonging to HTX, has emerged as the top holder of President Trump’s official memecoin launched earlier this year.
