HTX says wallet flags are causing transfer freezes across some platforms

[bezaaass]

It's so strange. There is very little information about these sanctions. It's unclear what people who still have funds on HTX should do, and what those who withdrew their funds but had them frozen by another exchange are supposed to do. Justin Sun is also staying silent.

[dwyane36]

It's so strange. There is very little information about these sanctions. It's unclear what people who still have funds on HTX should do, and what those who withdrew their funds but had them frozen by another exchange are supposed to do. Justin Sun is also staying silent.

Those who have withdrawn funds from HTX and are not subject to sanctions should probably use bridges or other services to sever the link between their addresses and this exchange. As for those whose funds have already been frozen by other exchanges, there is nothing to do but wish them luck in defending their position, since not every CEX support staff will want to look into each user's case.

[asriloni]

It's so strange. There is very little information about these sanctions. It's unclear what people who still have funds on HTX should do, and what those who withdrew their funds but had them frozen by another exchange are supposed to do. Justin Sun is also staying silent.

If your fund was on HTX, You should have just withdraw it to your personal wallet. All of HTX operationsa re still running properly.

On other hand, if your fund is getting blocked when it's on different exchange site, what you can do is always praying your fund is not linked to the Russia sanction. If it's linked with it, then your fund will be seized and your account will be restricted.

[passwordnow]

It's so strange. There is very little information about these sanctions. It's unclear what people who still have funds on HTX should do, and what those who withdrew their funds but had them frozen by another exchange are supposed to do. Justin Sun is also staying silent.

As long as the funds have been withdrawn already, there are ways to not be worried about the sanctions. But for those who are unable to withdraw it, that's the big problem exists and I do hope no one from the forum has got the funds there stuck and unable to withdraw. Awareness of what CEXes can do to our funds should make everyone prepare of the worse such as this halting or delays of withdrawals.

[Kavelj22]

UK sanctioned HTX because ties to Russia sanction evasion, OKX recently announced that they'd be freezing anyone who arbitraged back and forth between OKX and HTX to comply with UK sanction so have Binance, Bitget and many others.
If you have money in HTX you're basically screwed.

Although it is an unpleasant situation for HTX users, I find it strange why users should be punished. What should be the fault of people using a service that doesn't comply with sanctions set based on political positions? If I am using a bank and the bank refuse to adhere to west sanction, it is the bank assets that should be frozen, not my funds as a user. I am not responsible for the political position of the exchange or the bank I use. This is unfair situation and can affect the whole CEX industry, not just with HTX.

I would advice everybody to leave HTX after withdrawing with available privacy coins, but how to advice them to ise another CEX because the situation can happened with every company at any time.

[examplens]

Those who have withdrawn funds from HTX and are not subject to sanctions should probably use bridges or other services to sever the link between their addresses and this exchange. As for those whose funds have already been frozen by other exchanges, there is nothing to do but wish them luck in defending their position, since not every CEX support staff will want to look into each user's case.

There are more problems here, for example, which AML tools give the correct HTX safe result when checking?
How many users in general have the habit of performing an AML check before sending, especially if withdrawed funds are from cex.

If your fund was on HTX, You should have just withdraw it to your personal wallet. All of HTX operationsa re still running properly.

On other hand, if your fund is getting blocked when it's on different exchange site, what you can do is always praying your fund is not linked to the Russia sanction. If it's linked with it, then your fund will be seized and your account will be restricted.

It seems that this will cause a massive withdrawal of funds from HTX and this could mean the end of their business. I really don't see how he will manage to survive this.

[Oshosondy]

Vice-President of the European Commission, Kaja Kallas who officially serves as the High Representative of the Union for Foreign Affairs and Security Policy according to information I got from AI about the woman. She posted on X that transactions from 11 exchanges are under sanctions.

We are depriving Russia of the means to fund its war.
We intend to deal a heavy blow to Russia’s financial sector, imposing assets freezes on close to 90 banks and additional transactions bans on over 30 banks in Russia and other third countries.
We will also tighten our ban for crypto-asset services to certain third countries, add new designations, and ban transactions on 11 crypto platforms.

The name of the exchanges are not mentiond, but this show that it may not only be HTX.

[henmark]

I do hope no one from the forum has got the funds there stuck and unable to withdraw. Awareness of what CEXes can do to our funds should make everyone prepare of the worse such as this halting or delays of withdrawals.

As also a member of this forum, we can indeed feel bad too if our co-forumers are among the victims of this. But I think that is unlikely because in this forum, it is always discussed the dangers of storing funds inside a centralized platform.

Although it is an unpleasant situation for HTX users, I find it strange why users should be punished. What should be the fault of people using a service that doesn't comply with sanctions set based on political positions?

You already said the reason there actually. It is because people still use them despite them not complying to sanctions. In other words, this is like we people use an illegal service. There is truly a fine for that, or it is a type of violation in the customer's side. I know, there may be lesser restrictions on these type of platforms but it is still not worth the risk, since the punishments can be heavier than the advantage that we will experienced at them.

[dwyane36]

You already said the reason there actually. It is because people still use them despite them not complying to sanctions. In other words, this is like we people use an illegal service. There is truly a fine for that, or it is a type of violation in the customer's side. I know, there may be lesser restrictions on these type of platforms but it is still not worth the risk, since the punishments can be heavier than the advantage that we will experienced at them.

It’s one thing when a user continues to use a sanctioned service, but quite another when third-party services start targeting ordinary users because of transactions that took place months or even years ago.
In fact, this is exactly what happened in the case of HTX, where legitimate users and wallets were being flagged due to historical exposure.

[ultrloa]

You already said the reason there actually. It is because people still use them despite them not complying to sanctions. In other words, this is like we people use an illegal service. There is truly a fine for that, or it is a type of violation in the customer's side. I know, there may be lesser restrictions on these type of platforms but it is still not worth the risk, since the punishments can be heavier than the advantage that we will experienced at them.

It’s one thing when a user continues to use a sanctioned service, but quite another when third-party services start targeting ordinary users because of transactions that took place months or even years ago.
In fact, this is exactly what happened in the case of HTX, where legitimate users and wallets were being flagged due to historical exposure.

Its unfair for those ordinary people to get flagged happen a year ago, regulators must think about proper action towards this since this is not good and it seems that they are trying to create baseless issue with all people use HTX.

Its kinda unfair if they punish those people didn't do anything and just made a legitimate transaction on their site.

If these regulators will be tolerated with their bad actions and no one bothers them, maybe they continue to do that then abuse their powers.

[Kavelj22]

Although it is an unpleasant situation for HTX users, I find it strange why users should be punished. What should be the fault of people using a service that doesn't comply with sanctions set based on political positions?

You already said the reason there actually. It is because people still use them despite them not complying to sanctions. In other words, this is like we people use an illegal service. There is truly a fine for that, or it is a type of violation in the customer's side. I know, there may be lesser restrictions on these type of platforms but it is still not worth the risk, since the punishments can be heavier than the advantage that we will experienced at them.

It is the company responsability to not to comply with the laws. Punishment should be applied for the part who doesn't follow the rules, not its customers. It is fair enough to warn users about the risk in losing their assets by using that punished company in case of dispute because the legislation won't help them anymore, but to apply punishment is an excessive step imo. I provided the example with banks, if the bank makes something against the laws, should we punish clients who use it? Or just warn them and let them decide? In other words, why should the authorities punish someone who wants to risk his assets in at an unauthorized service? I really can't find rational explanation about this.

[ImGenius]

If someone do arbitrage it's right for exchanges to freeze their funds but in this process many innocent users will also get freeze if this happens exchange maybe won't unfreeze account soon or they freeze the account forever. Those who have funds in HTX account if you don't want to rusk it i recommend to widthaw them in a wallet asap.

[Odogwu-Blockchain]

It's so strange. There is very little information about these sanctions. It's unclear what people who still have funds on HTX should do, and what those who withdrew their funds but had them frozen by another exchange are supposed to do. Justin Sun is also staying silent.

Is Sun the owner or one of the board directors of HTX? He only own own Tron and it's ecosystem, so what's his concern about HTX been frozen. Since HTX is a centralized body, let them comply with every platforms to uplift such sanctions off their users for Christ sake. This isn't a game to be played on user's funds at all.

[TastyChillySauce00]

If someone do arbitrage it's right for exchanges to freeze their funds but in this process many innocent users will also get freeze if this happens exchange maybe won't unfreeze account soon or they freeze the account forever. Those who have funds in HTX account if you don't want to rusk it i recommend to widthaw them in a wallet asap.

CEX don't even bother to look at the user transaction and what they are doing in relation to HTX. They only get data from on chain risk assessment company and act upon it.
Even if you are only withdrawing your money to a better CEX without doing the arbitrage trading, your account and deposit will fall under risky category and your account might be frozen.