The UK Financial Conduct Authority (FCA) has taken HTX, the global crypto exchange formerly known as Huobi, to court for unlawfully promoting cryptocurrency services to British consumers, escalating the country’s crackdown on unregulated digital asset firms.

In a statement on Wednesday, the FCA said it had filed civil proceedings in London’s High Court, accusing HTX of violating Britain’s financial promotions laws. The regulator stressed that HTX is not authorised to operate or advertise in the UK, yet has been targeting UK-based investors.

“This action demonstrates our ongoing effort to safeguard consumers and preserve confidence in the UK’s financial system,” an FCA spokesperson said.

HTX, founded in 2013, lists Chinese crypto entrepreneur Justin Sun as its global adviser. Sun, who also supports Donald Trump’s crypto venture World Liberty Financial, is tied to the exchange through a wallet identified as the top holder of Trump’s $TRUMP memecoin.

Under rules introduced in 2023, crypto firms marketing to UK customers must register with the FCA and adhere to anti-money-laundering standards. HTX, however, remains on the FCA’s warning list, signaling potential risks for users.

The case names Huobi Global and four “persons unknown” — believed to include senior executives and promotion managers at the company — as defendants.

The lawsuit reflects a growing international tension between regulators and offshore crypto exchanges that market aggressively to Western investors without complying with local laws.

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