Hyperliquid user says HTX linked transfer led to wallet being flagged as high risk
A Hyperliquid user has reported that their wallet was flagged as high risk after receiving a repayment linked to crypto exchange HTX, raising concerns about how sanctions screening can affect users who have never directly used a sanctioned platform.
- A Hyperliquid trader said their wallet was flagged as high risk after receiving a repayment from a friend who used HTX.
- Another user reported that three of their wallets were restricted in June after interacting with HTX following UK sanctions against the exchange.
- The restrictions have raised concerns about access to future airdrops, with one affected trader claiming they could not collect Kinetiq Season 2 rewards.
- Users questioned whether small transfers from HTX could cause unrelated wallets to be flagged, although no automatic ban mechanism has been confirmed.
In an October 25 X post, the trader known as x256.hl said they had lent a friend several thousand dollars months earlier and subsequently received repayment from HTX, formerly Huobi.
Ok, so now I know what happened.
— x256.hl (@x256xx) October 25, 2026
A few months ago, I lent a friend a few grand. He paid me back from Huobi (HTX), which I didn’t even know at the time. I’ve never used Huobi myself, and he had no idea the exchange had any sanctions issues either.
Now my Hyperliquid wallet is… https://t.co/xKXryCceTt
The trader said they were unaware of the exchange’s sanctions problems and had never personally used HTX. Their friend reportedly had no knowledge of the restrictions either.
Hyperliquid flags user address. Source: X/x256xx
The user questioned whether sending small amounts from HTX to other Hyperliquid wallets could cause those addresses to face similar restrictions.
Hyperliquid wallet restrictions have affected other traders
The complaint prompted a response from another Hyperliquid user, @0xasrequired, who said they had experienced similar problems after interacting with HTX.
The trader referred to a detailed X article describing how three wallets were restricted from Hyperliquid’s official frontend in June following transactions involving the exchange.
According to the account, two wallets were initially flagged on June 2, while a third was restricted on June 5. The trader said the wallets represented 99.5% of their net worth and contained activity accumulated across several decentralized finance protocols.
Their Hyperliquid trading history reportedly included more than $210 million in volume, over $60,000 in trading fees and another $50,000 in builder fees.
Although the trader could still access Hyperliquid through alternative interfaces, they argued that losing access to the official frontend could prevent them from signing terms required for future airdrop claims.
In the latest exchange, @0xasrequired said they had been unable to claim Kinetiq Season 2 rewards despite ranking among the top 150 participants.
The original complainant responded that they had successfully claimed their Kinetiq rewards, although the HTX-related transaction occurred before the final snapshot.
UK sanctions against HTX triggered wallet screening problems
The restrictions followed the United Kingdom’s May 26 sanctions against Huobi Global S.A., which British authorities accused of providing financial services connected to Russia-linked entities, including A7 and Garantex.
As crypto.news reported in May, the designation introduced asset freezes and financial restrictions involving the sanctioned company.
HTX disputed the decision’s application to its operating exchange, arguing that Huobi Global S.A. was a separate legal entity. British sanctions authorities subsequently clarified that they considered HTX subject to the restrictions through ownership rules.
Compliance problems soon appeared across other platforms.
In June, FixedFloat suspended Huobi-linked funds for additional verification, while blockchain investigator ZachXBT criticized the treatment of ordinary users whose wallets had interacted with the exchange.
Kraken and OKX issued warnings concerning transfers involving HTX, with users potentially facing additional reviews.
The restrictions continued in August when Binance announced transaction limits involving HTX and 10 other platforms following sanctions-related regulatory measures.
Third-party screening raises questions over wallet bans
In their June article, @0xasrequired said conversations with Blockaid, Chainalysis and TRM indicated that compliance providers supply transaction information and risk assessments, while individual platforms determine which wallets to restrict.
The trader claimed Hyperliquid had identified Chainalysis as its screening provider, although that relationship has not been independently confirmed.
Their wallets reportedly passed checks conducted through GoPlus Security and Blockaid despite being restricted on Hyperliquid.
The article described separate restrictions involving GRVT and OpenSea, including wallets that allegedly had no direct onchain connection to HTX but were associated with the same OpenSea profile.
Another case involved Hyperliquid user Maxime, who said their wallet was mistakenly flagged after receiving a $0.02 transaction associated with a suspicious address. Their frontend access was subsequently restored.
The possibility of unwanted transfers triggering restrictions has remained a concern among affected traders.
The October complaint has not been accompanied by a public explanation from Hyperliquid identifying the specific transaction or screening criteria responsible for the flag.
In the earlier case, @0xasrequired said they had opened a Discord support ticket and received an initial response from Hyperliquid co-founder iliensinc, but had not received a further resolution when their article was published.