ZachXBT: UK Sanctions on HTX Are Undermining On-Chain Risk Scoring

Crypto investigator ZachXBT said UK sanctions on HTX have resulted in widespread address “tainting,” weakening the reliability of blockchain risk-scoring systems. He explained that compliance tools have difficulty distinguishing between transactions made before and after the sanctions, creating challenges for accurate investigative labeling.

He also pointed out that regulatory attention has been heavily directed toward HTX, while a separate $1.25 billion laundering case has not received similar focus.

In a related development, FixedFloat said it has suspended processing HTX-linked funds and is now subjecting them to enhanced compliance checks.

Source: ZachXBT