Hyperliquid users face wallet restrictions over HTX transfers

The trader, known as x256.hl, reported receiving funds from a friend who utilized HTX—formerly Huobi—without realizing the exchange faced regulatory hurdles. This case mirrors previous complaints from users who found their access to Hyperliquid’s official frontend curtailed following transactions linked to the exchange. One trader, @0xasrequired, previously documented how three wallets were restricted in June after interacting with HTX, effectively barring them from claiming rewards for Kinetiq Season 2 despite significant trading activity.

These issues stem from United Kingdom sanctions imposed in May against Huobi Global S.A., which authorities accused of facilitating services for Russia-linked entities. While HTX has disputed its inclusion under these restrictions, platforms like Kraken, OKX, and Binance have implemented heightened oversight for transfers involving the exchange. Compliance firms such as Chainalysis, Blockaid, and TRM provide the risk assessment data, but individual platforms retain the authority to determine specific enforcement actions. Despite the growing frustration, Hyperliquid has yet to provide a public explanation regarding its specific screening criteria or the mechanism triggering these flags.