UK Regulator Sues Crypto Exchange HTX Linked to Trump Donor Justin Sun
The UK’s Financial Conduct Authority (FCA) has filed a lawsuit against the cryptocurrency exchange HTX, alleging the platform unlawfully promoted cryptoasset services to consumers in the united Kingdom. This marks the first time the UK regulator has taken legal action against a crypto company,signaling a heightened scrutiny of the rapidly evolving digital asset landscape.
The FCA initiated the lawsuit in the High Court this week, asserting that HTX violated the UK’s financial promotions regime. “This action is part of our commitment to protect consumers and uphold the integrity of UK financial markets,” the FCA stated, declining to provide further details regarding the specifics of the case. The regulator emphasized it’s willingness to act decisively against firms that fail to adhere to its rules, even as many crypto companies have shown a positive response to recent regulations.
The lawsuit centers on HTX, which has ties to Justin Sun, a Chinese-born billionaire and prominent figure in the cryptocurrency world. Sun has previously faced legal challenges and is known for his notable investments in digital assets, including those associated with former US President Donald Trump.
Sun reportedly spent $75 million on tokens issued by world Liberty Financial, the Trump family’s crypto company, shortly before a US lawsuit alleging wash trading – a form of market manipulation – against Sun and three of his companies was paused earlier this year. Wash trading involves simultaneously buying and selling the same asset to create artificial trading volume and mislead investors.
Beyond his financial dealings, sun has garnered attention for extravagant displays of wealth, including a flight on Jeff Bezos’ spacecraft in August and the purchase of a $6 million banana as part of an art installation in Hong Kong last year.
HTX, formerly known as huobi, is currently on the FCA’s warning list of companies operating without the necessary authorization to serve UK consumers. The UK requires crypto firms to register with the FCA and undergo checks related to financial crime and anti-money laundering controls, a process HTX has not yet completed. Fewer than 50 groups have successfully registered to date.
The legal action against HTX comes after the US Securities and Exchange Commission (SEC) filed a lawsuit against Sun and his companies in 2023, alleging fraud and wash trading. That case was paused in February at the request of both the SEC and Sun, who has denied the allegations and sought dismissal.
sun’s financial support for Trump extends beyond World Liberty Financial. He has become a major holder of Trump’s memecoin, reportedly spending millions and securing invitations to the White House and Trump’s golf club in Virginia. In June, World Liberty Financial began minting its token, USD1, on Tron’s exchange – a platform run by Sun – which subsequently boosted trading volumes and fees.
Tron itself went public on Nasdaq this year through a reverse merger, and is actively buying and holding the TRX token, positioning itself as one of many “crypto treasury companies.”
The FCA’s lawsuit against HTX underscores the