UK Regulator Takes Justin Sun-linked HTX to Court Over Illegal Crypto Promotions
Why Has the FCA Taken Court Action?
Britain’s Financial Conduct Authority has launched court proceedings against crypto platform HTX, formerly known as Huobi, accusing the platform of illegally promoting cryptoasset services to UK consumers. The regulator said it concluded that HTX repeatedly breached the UK’s crypto financial promotions rules, even later than receiving direct warnings and being placed on the FCA’s Warning List.
According to the FCA, HTX continued to publish unlawful promotions through its website and across major social media platforms, including TikTok, X, Facebook, Instagram and YouTube. These activities allegedly persisted despite the platform being informed that such promotions were not permitted under UK law.
The case is notable because it represents the first time the firm to court specifically for breaching the post-October 2023 crypto financial promotions regime. That framework introduced criminal liability for firms that market cryptoassets to UK consumers without meeting strict approval, disclosure and risk-warning standards.
Investor Takeaway
How the UK’s Crypto Promotions Rules Apply
The UK’s crypto financial promotions regime came into force in October 2023 and applies to both domestic and overseas firms that target UK consumers. Any crypto promotion must either be issued by an authorised firm or approved by one, and must meet detailed requirements on risk disclosures and presentation.
The FCA has said that most firms adjusted their marketing practices or withdrew from the UK following the rules’ introduction. In HTX’s case, however, the regulator said the platform continued publishing promotions that failed to meet legal standards.
Under UK law, advertising cryptoassets to UK consumers without authorisation or an approved promotion is a criminal offence. The FCA said HTX’s alleged conduct crossed that threshold, prompting a move from supervision to enforcement.
Opaque Structure and Limited Cooperation
A central element of the FCA’s case concerns HTX’s organisational opacity. The regulator said the platform operates through an unclear structure that makes it hard to identify who owns, controls, or is responsible for its website and marketing activity.
According to the FCA, repeated attempts to engage with HTX received no meaningful response. That lack of cooperation led the regulator to abandon further supervisory dialogue and instead pursue formal legal proceedings.
The FCA acknowledged that HTX has taken some steps to restrict new UK users from registering. However, it said existing UK customers can still log in and view promotions that the regulator considers unlawful. The FCA added that it has not received assurances that these changes are permanent, raising concerns about continued non-compliance.
High Court Proceedings and Unnamed Defendants
The proceedings were filed on 21 October 2025 in the Chancery Division of the High Court of Justice. Alongside HUOBI GLOBAL S.A., a Panama-incorporated entity, the FCA named a broad group of “Persons Unknown” as defendants.
These include individuals or entities alleged to own or control HTX, those defined as “HTX Operators” under the platform’s July 2023 user agreement, and parties responsible for running HTX’s promotional channels on social media and messaging platforms. The claim also extends to future unknown parties who may take control of HTX or its marketing channels before October 2028.
On 4 February 2026, the High Court granted the FCA permission to serve proceedings outside the UK and by alternative means. The order followed a decision allowing the case to proceed despite hardies in identifying or locating those behind the platform.
Investor Takeaway
What the Case Means for the Crypto Market
The FCA framed the action as part of a broader enforcement phase in its crypto oversight approach. Steve Smart, joint executive director of enforcement and market oversight at the FCA, contrasted HTX’s conduct with that of firms that adjusted to the new rules.
“Our rules are designed to support a sustainable and in the UK, ensuring that consumers have what they need to make informed decisions,” Smart said. “HTX’s conduct stands in stark contrast to the majority of firms working to comply with the FCA’s regime.”
Beyond the court case, the said it has asked social media platforms to block HTX accounts for UK users and requested the removal of HTX apps from the UK versions of Apple’s App Store and Google Play. HTX also remains on the FCA’s Warning List, meaning UK users have no access to the Financial Ombudsman Service if disputes arise.
The FCA has made it clear that overseas status does not exempt crypto firms from UK law if they continue to target UK consumers. The HTX case now stands as a practical test of how far the regulator is prepared to go to enforce that principle.
