HTX, formerly Huobi, faces an increasingly precarious situation after sanctions were imposed by the European Union and the United Kingdom. The exchange moved a significant portion of its reserves to an undisclosed third party, and users cannot verify these balances because the custodian is not disclosed. Protos traced approximately $200 million worth of sUSDS along with WBTC flowing from HTX to multiple addresses labeled Poloniex 7, Poloniex 10 and Poloniex 9. TRM Labs had previously reported that HTX was moving its wallets at a rapid pace to evade sanctions screening. These related-party transactions totaling hundreds of millions of dollars raise serious questions about internal controls and Poloniex’s role in interacting with this repeatedly sanctioned entity.
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