Hassan Maishera
TL;DR
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The UK sanctioned 18 entities, including Huobi (HTX) and a stablecoin issuer, for helping Russia evade restrictions and finance its war in Ukraine.
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Sanctions target Russia’s "illicit financial infrastructure," focusing on the A7 payments network.
The United Kingdom has imposed sanctions on a range of cryptocurrency exchanges, payment firms, and individuals accused of helping Russia bypass Western restrictions and fund its war in Ukraine. The measures include crypto exchange Huobi Global S.A., operator of the HTX platform.
UK Sanctions Crypto Firms, Including Huobi/HTX, Over Alleged Russia War Financing Links
Announced by the U.K. Foreign, Commonwealth & Development Office, the sanctions target 18 entities and individuals allegedly connected to what officials described as Russia’s “illicit financial infrastructure used to move funds, procure goods, and sustain its war effort.”
Among the designated firms are Huobi Global S.A., Rapira Group LLC, Aifory LLC, Arvix LLC, and Bitpapa IC FZC LLC.
HTX, one of the world’s largest crypto exchanges, reportedly handled around $3.3 trillion in trading volume last year, according to blockchain analytics firm Elliptic. The firm also alleged that HTX may have provided services linked to the A7 payments network and Garantex, a Russian exchange previously sanctioned by Western governments. Garantex later rebranded as Grinex and reportedly suspended operations after a $13 million “state-backed” hack.
The U.K. also sanctioned Open Joint Stock Company “Virtual Asset Issuer,” a Kyrgyzstan-linked entity behind the USDKG gold-backed stablecoin, alongside several individuals accused of sanctions evasion, including Sergey Mendeleev, Igor Gorin, Irina Akopyan, and Israeli national Liran Cohen.
Officials said the move represents one of the strongest actions yet against Russia’s use of cryptocurrencies and alternative payment systems. For the first time, the U.K. applied Regulation 17A of its Russia sanctions framework directly to crypto exchanges—a mechanism previously reserved for traditional financial institutions such as banks.
Under the rules, U.K. financial institutions and crypto service providers are prohibited from maintaining correspondent relationships with designated entities or processing related payments. Firms may also be required to freeze assets and trace blockchain transactions linked to sanctioned addresses.
Elliptic noted that compliance obligations could extend across multiple blockchain “hops,” requiring firms to track funds beyond direct counterparties and across interconnected wallets and exchanges.
A key focus of the sanctions is the Kremlin-linked A7 payments network, which British authorities say helped process proceeds from Russian oil sales and supported military procurement. The network reportedly moved more than $90 billion last year.
Analysts suggest other regulators may closely monitor the U.K.’s approach as it tests how traditional sanctions enforcement can be applied to digital asset markets.
