UK Sanctions Hit Huobi, Crypto Firms Accused of Helping Russia Evade Restrictions

The United Kingdom has imposed new sanctions on several cryptocurrency exchanges, payment companies, and individuals accused of helping Russia bypass Western financial restrictions and support its war efforts in Ukraine. Among the firms targeted are major crypto exchange Huobi Global S.A., now operating as HTX, along with Rapira Group LLC, Aifory LLC, Arvix LLC, and Bitpapa IC FZC LLC.

The sanctions were announced by the U.K. Foreign, Commonwealth & Development Office as part of a broader crackdown on Russia’s alleged “illicit financial infrastructure.” British officials claim these networks have been used to move money, purchase goods, and sustain military operations despite international sanctions.

HTX, formerly known as Huobi, is one of the world’s largest cryptocurrency exchanges, generating an estimated $3.3 trillion in trading volume last year, according to blockchain analytics company Elliptic. The firm has reportedly been linked to the A7 payments network and Garantex, a Russian crypto exchange already sanctioned by Western authorities. Garantex later rebranded as Grinex before suspending operations following a reported $13 million cyberattack.

The U.K. also sanctioned Open Joint Stock Company “Virtual Asset Issuer,” a Kyrgyzstan-linked organization connected to the USDKG gold-backed stablecoin. Several individuals, including Sergey Mendeleev, Igor Gorin, Irina Akopyan, and Israeli national Liran Cohen, were also added to the sanctions list over alleged sanctions-evasion activities.

This marks one of Britain’s strongest actions yet against Russia’s use of cryptocurrencies and alternative payment systems. For the first time, the U.K. applied Regulation 17A of its Russia sanctions regime to crypto exchanges, extending restrictions previously aimed at sanctioned banks.

Under the new rules, U.K. financial institutions and crypto service providers are prohibited from maintaining business relationships or processing transactions tied to sanctioned entities. Compliance measures may also require firms to trace blockchain transactions across multiple wallet connections and exchanges.

Analysts believe the move could influence how global regulators apply traditional financial sanctions to the rapidly growing digital asset market in 2026.