TLDR
- A Hyperliquid trader says their wallet was flagged as high risk after a friend repaid a loan using funds from HTX.
- The trader says they never used HTX and did not know about the exchange’s sanctions problems.
- Another user says three of their wallets were restricted in June and they could not claim Kinetiq Season 2 rewards.
- The UK sanctioned Huobi Global S.A. on May 26, and officials later said HTX is covered under ownership rules.
- Hyperliquid has not publicly explained which transaction or screening rules caused the latest flag.
A Hyperliquid trader says their wallet was flagged as high risk after receiving a loan repayment that came from crypto exchange HTX. The case has raised questions about how sanctions screening affects people who never used a sanctioned platform.
In an October 25 post on X, the trader known as x256.hl said they lent a friend several thousand dollars months ago. The friend later repaid the money from HTX, formerly known as Huobi.
The trader said they had never used HTX and did not know about its sanctions problems. Their friend reportedly did not know either.
The user also asked whether small transfers from HTX to other Hyperliquid wallets could get those addresses flagged. No automatic ban mechanism of this kind has been confirmed.
Other Hyperliquid Traders Report Similar Restrictions
Another Hyperliquid user, @0xasrequired, replied that they faced similar problems after interacting with HTX. They pointed to an earlier X article describing how three of their wallets were blocked from Hyperliquid’s official frontend in June.
Two wallets were flagged on June 2 and a third on June 5. The trader said the wallets held 99.5% of their net worth.
Their Hyperliquid history reportedly included more than $210 million in trading volume. They said they also paid over $60,000 in trading fees and $50,000 in builder fees.
The trader could still reach Hyperliquid through other interfaces. However, they said losing the official frontend could stop them from signing terms needed for future airdrop claims.
In the latest exchange, @0xasrequired said they could not claim Kinetiq Season 2 rewards despite ranking in the top 150. The original complainant said they did claim their Kinetiq rewards, even though the HTX-linked transfer happened before the final snapshot.
UK Sanctions on HTX Led to Wider Screening
The restrictions trace back to May 26, when the United Kingdom sanctioned Huobi Global S.A. British authorities accused the company of providing financial services tied to Russia-linked entities, including A7 and Garantex.
HTX argued the sanctions did not apply to its exchange because Huobi Global S.A. was a separate legal entity. UK officials later said they considered HTX covered under ownership rules.
Other platforms soon acted. In June, FixedFloat held Huobi-linked funds for extra checks, while Kraken and OKX warned users about HTX transfers. In August, Binance announced transaction limits involving HTX and 10 other platforms.
Blockchain investigator ZachXBT criticized how ordinary users with HTX-linked wallets were being treated.
In June, @0xasrequired said talks with Blockaid, Chainalysis and TRM showed these firms supply data and risk scores, while each platform decides which wallets to restrict. The trader claimed Hyperliquid named Chainalysis as its screening provider, though this has not been independently confirmed.
The trader said their wallets passed checks from GoPlus Security and Blockaid but were still restricted on Hyperliquid. They also described separate restrictions on GRVT and OpenSea.
In another case, Hyperliquid user Maxime said their wallet was wrongly flagged after receiving a $0.02 transfer tied to a suspicious address. Their frontend access was later restored.
In the June case, @0xasrequired said they opened a Discord support ticket and got a first reply from Hyperliquid co-founder iliensinc, but no final resolution. As of the latest complaint, Hyperliquid has not publicly explained which transaction or screening rules triggered the new flag.
