The UK Financial Conduct Authority (FCA) has filed its first civil lawsuit against a cryptocurrency exchange — targeting HTX (formerly Huobi), an exchange connected to entrepreneur Justin Sun.
The regulator accuses HTX of illegally promoting crypto services to UK consumers without authorization, marking a significant escalation in Britain’s enforcement of crypto marketing rules.
“The FCA has initiated civil proceedings in the High Court against HTX, a global crypto exchange, for unlawfully promoting crypto asset services to UK consumers in violation of the UK’s financial promotion regime,” the regulator said in a statement. “This action reflects our ongoing commitment to protect consumers and uphold the integrity of the UK financial system.”
First Legal Action of Its Kind in the UK
This is the first lawsuit of its kind filed by the FCA against a cryptocurrency company. The regulator emphasized that while most crypto firms have complied with the country’s new promotion and registration rules, it will not hesitate to act against those that ignore them.
HTX has been on the FCA’s warning list for companies that “illegally target UK users” without proper registration. Back in October 2023, the FCA publicly stated that HTX and KuCoin lacked authorization to operate in the UK and urged consumers to avoid both platforms.
Unregistered and Non-Compliant
Under UK law, crypto companies must register with the FCA to offer services in the country. The registration process requires compliance with anti-money-laundering (AML) standards and financial crime controls.
HTX, however, does not appear on the FCA’s list of nearly 50 authorized firms, signaling non-compliance with local regulatory requirements.
Despite the legal risks, HTX remains one of the world’s largest exchanges. In May 2024, it briefly surpassed Coinbase in daily spot trading volume, reaching $2.15 billion, trailing only Binance, Bybit, and OKX.
A Signal to the Crypto Industry
While details of the lawsuit have not been disclosed, the FCA said that the action sends a clear warning to the global crypto market: operating in the UK requires transparency, registration, and compliance with financial promotion laws.
Industry observers view the case as a test of the UK’s crypto oversight framework, which has grown stricter since the introduction of financial promotion rules in 2023.
Justin Sun’s Involvement
HTX has long been associated with Justin Sun, the Chinese-American founder of TRON and advisor to the exchange. In February 2024, Sun revealed that he personally held over 28,613 BTC (worth more than $1.6 billion) on HTX — a statement meant to show his confidence in the platform’s stability.
The FCA’s legal move represents a major milestone in the UK’s evolving stance on digital assets. It underscores growing international scrutiny of unlicensed crypto operations and could set a precedent for similar enforcement actions in other jurisdictions.
