The HTX exchange under Sun Yuchen has been sued by the UK FCA for violating financial promotion regulations by promoting encryption asset services to consumers.

The UK Financial Conduct Authority (FCA) has filed a lawsuit against the cryptocurrency exchange HTX, founded by TRON creator Justin Sun, accusing it of illegally promoting crypto asset services to UK consumers. (Background: Justin Sun launched a $200 million “experience fund program”: Sun Wukong DEX and Huobi each provided $100 million to subsidize users, raising two major community concerns) (Additional background: Justin Sun requested Bloomberg “not to disclose crypto asset holdings,” but the judge dismissed it after hearing: reasonable reporting usage) According to Bloomberg, on October 22, the FCA filed a civil lawsuit in the High Court of London against multiple entities associated with the cryptocurrency exchange HTX (Huobi) founded by TRON (TRON) creator Justin Sun, accusing the platform of violating the UK's financial promotion regime by illegally promoting crypto asset services to UK consumers. Reasons and Background for FCA's Lawsuit Against HTX This lawsuit targets multiple related entities of HTX, including Huobi Global and four groups identified as “unknown persons,” covering the platform's owners, operators, and promotional responsible parties. The lawsuit alleges that HTX provided cryptocurrency services to UK consumers through its trading platform without FCA authorization, violating the new financial promotion regulations implemented in the UK in 2023. These new regulations require all crypto businesses operating in the UK to complete registration and comply with anti-money laundering (AML) and know-your-customer (KYC) requirements. The FCA pointed out that HTX's actions may endanger UK consumers, especially since the platform has been listed on the FCA's “warning list,” advising investors to avoid using its services to prevent loss of funds or fraud risks. An FCA spokesperson emphasized that the lawsuit aims to “protect consumers and maintain the integrity of the UK financial market.” We know that HTX is closely related to Justin Sun, who is not only the founder of TRON (TRON) but also serves as a global advisor for HTX. It is still unclear whether Justin Sun is listed as a direct defendant in the lawsuit, and the FCA has not disclosed further details, nor has HTX made a public response to this. Potential Impact of the Lawsuit This lawsuit may have far-reaching effects on HTX. Analysts point out that, firstly, for HTX, the lawsuit may lead to a short-term outflow of user funds. Previous similar cases have shown that the prices of related tokens (such as TRON's TRX) may also face severe fluctuations in the short term. For UK consumers, the risks of using HTX will also increase. The FCA warns that users of these platforms may not be able to obtain protection from the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS). Related Reports The Steaker class action lawsuit ruling is out: full refund required, but excluding interest and other earnings! Does the judgment contain important legal significance? Letter to the Editor: Anthropic lawsuit uncovers the AI veil: plundering under the guise of social welfare, we all should be responsible for the knowledge desert of the next generation. Anthropic faces trillion-dollar-level copyright lawsuits for using 7 million books to train Claude! The mad rush of AI giants and the legal boundaries. (Justin Sun's HTX exchange sued by the UK FCA: Violating financial promotion regulations, promoting crypto asset services to consumers) This article was first published in BlockTempo, the most influential blockchain news media.