FCA Files Historic Lawsuit Against HTX Over Illegal Crypto Ads

The UK’s Financial Conduct Authority (FCA) has launched a landmark legal action against HTX, the crypto exchange formerly known as Huobi, over allegations that it illegally promoted digital asset services to consumers in the United Kingdom.

This move marks the regulator’s first-ever enforcement case against a crypto firm under the country’s tightened financial promotions regime.

Why This Case Matters

• This lawsuit is a significant moment in the UK’s evolving crypto regulatory landscape.
• According to Steve Smart, the FCA’s joint executive director of enforcement, HTX’s behaviour “stands in stark contrast” to the majority of firms that have adapted to the UK's stricter framework. He emphasised that the FCA’s rules are designed to create a sustainable and competitive crypto market built on transparent and responsible advertising.
• For international crypto exchanges, the HTX case sets a clear precedent: offshore registration does not shield firms from UK regulatory obligations if they target British consumers.
• As global regulators tighten their oversight of digital asset marketing, similar enforcement actions may follow against other non-compliant platforms.

A Major Step in the UK’s Crypto Crackdown

• According to FCA statements and court filings, the regulator began proceedings in the Chancery Division of the High Court in October 2025.
• The case escalated when the court granted the FCA permission on February 4, 2026, to serve legal documents outside the UK via alternative methods necessary due to HTX’s offshore structure.  
• The FCA alleges that HTX repeatedly promoted crypto products through its website, mobile apps, and major social media platforms, including TikTok, X, Facebook, Instagram, and YouTube, without meeting the UK’s strict marketing rules introduced in October 2023.
• These rules require any crypto promotion targeting UK users to be authorised or approved by a regulated firm, and to display clear, fair, and non‑misleading risk warnings.
• Despite receiving multiple warnings from the regulator, HTX allegedly continued its promotional activity, prompting the FCA to escalate to legal action.  

Opaque Corporate Structure and Lack of Cooperation

• A recurring theme from the FCA’s filings is the difficulty in identifying HTX’s responsible entities.
• HTX is incorporated in Panama and operates via what the FCA describes as an “opaque organisational structure”, making it difficult to determine the individuals or entities behind the exchange.
• Attempts by the regulator to engage with the company reportedly went unanswered.
• HTX, which has been associated with high-profile crypto figure Justin Sun, remains on the FCA’s public Warning List. This means UK consumers who use the platform lack access to the Financial Ombudsman Service, leaving them without UK regulatory protections.

Regulator Orders Social Media Blocks and App Store Removal

• As part of its enforcement effort, the FCA has requested that social media companies restrict HTX’s accounts from being visible to UK users.
• Additionally, the regulator has asked Google and Apple to remove HTX’s apps from UK app stores. These steps aim to “halt ongoing unlawful promotions” and reduce consumer exposure while court proceedings continue.
• HTX has reportedly taken some steps to restrict new UK user registrations. However, the FCA notes that existing UK customers can still log in and are still shown non-compliant promotions, raising concerns about continued breaches.

Sources

• https://www.livebitcoinnews.com/fca-targets-htx-over-illegal-crypto-ads-aimed-at-uk-users/
• https://www.cryptopolitan.com/uks-fca-sues-panama-based-htx-exchange/
• https://cointelegraph.com/news/fca-action-htx-exchange-illegal-financial-promotion
• https://coinalertnews.com/news/2026/02/10/uk-fca-court-action-htx-promotions
• https://cryptonews.com/news/fca-moves-against-htx-in-london-over-illegal-crypto-promotions-warning-to-other-exchanges/
• https://www.devdiscourse.com/article/technology/3800334-fca-cracks-down-on-htx-illegal-crypto-promotions-under-fire
• https://www.financemagnates.com/cryptocurrency/regulation/fca-sues-justin-sun-linked-crypto-exchange-htx-for-unlawful-promotions/
• https://www.gncrypto.news/news/uk-fca-high-court-action-htx-crypto-promotions/