KuCoin has expanded sanctions screening to indirect crypto transfers across 17 crypto platforms, including Justin Sun-linked HTX.
Under an Aug. 27 compliance notice, KuCoin said Shelbit, Aban Tether, A7 Nigeria, A7 Africa, PilotFinance, Rapira, Aifory Pro, ABCeX, WhiteBird, NoOnecrypto, Tradex, Monease, BitPapa, Exnode, Exnode Pay, EXMO and “HTX (Huobi Global SA)” are covered by the restrictions.
The policy means users can face held or rejected transactions even when they do not transact directly to one of the listed platforms. KuCoin said it may screen the source of funds, originating and destination addresses, and intermediary service providers for connections to the affected entities.
Transactions attempted to these platforms may undergo enhanced review or trigger temporary wallet and account restrictions. KuCoin said repeated or serious violations could ultimately lead to suspension or withdrawal of its services from the user.
The controls broadly track recent US and European sanctions actions, but their reach extends beyond direct counterparties.
| Effective date | Providers in KuCoin’s notice |
|---|---|
| Aug. 7 | Shelbit (Shelbit General Trading LLC); Aban Tether Exchange |
| Aug. 13 | A7 Nigeria; A7 Africa; PilotFinance Ltd |
| Aug. 23 | Rapira; Aifory Pro (Sooty Ltd.); ABCeX (Nueva Cryptologia S.A.S DE C.V.); WhiteBird; NoOnecrypto INC.; Tradex (Brightum LLC); Monease Ltd; BitPapa; Exnode, Exnode Pay (Arvix); HTX (Huobi Global SA); EXMO Ltd |
KuCoin has not disclosed how many transaction hops it traces or what level of on-chain attribution is sufficient to establish an indirect connection.
HTX faces growing isolation from major exchange rails
HTX is the most consequential name on KuCoin’s list by scale and is already facing similar restrictions elsewhere.
Binance stopped processing transactions involving HTX and 10 other platforms from Aug. 23 as part of its own sanctions-compliance measures. This narrows the routes through which HTX-linked funds can move across major exchanges even as HTX itself remains operational.
HTX continues to dispute the sanctions-related allegations and the corporate identity behind the designation. The EU regulation names “HTX (Huobi Global SA),” a label also used by KuCoin.
However, HTX said in May that Huobi Global S.A. is distinct from the online HTX exchange.
Meanwhile, the Justin Sun-linked exchange said it is pursuing legal and compliance discussions with authorities in the UK and EU as some users report funds being frozen on third-party platforms, including Kraken.
HTX said it has submitted materials relating to 17 Kraken user freeze cases to the courts and is working to reduce disruptions affecting customers.
Molly, HTX’s head of markets, said the exchange processed more than 100,000 deposit and withdrawal transactions over two days without identifying new cases of indiscriminate freezes.
She also said HTX recently upgraded its wallet infrastructure and introduced a withdrawal-address rotation mechanism. The exchange described the changes as a security measure intended to reduce disruption from third-party risk controls and on-chain labeling.
For users, the practical effect is increasingly clear. Funds linked to HTX or another listed provider can face restrictions before they reach KuCoin, depending on the transaction path and the intermediaries involved.
That pushes sanctions enforcement beyond direct counterparties and deeper into transaction provenance, with exchanges increasingly assessing where funds originated, where they are headed, and which services they touched along the way.
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