HTX loses liquidity as Binance blocks transfers, thinning ETH book

Binance is cutting HTX off. The world’s largest crypto exchange will stop processing all deposits and withdrawals involving HTX and ten other platforms effective August 23, 2026, a move driven by sanctions compliance that’s already draining liquidity from HTX’s order books. The ETH trading book on HTX has visibly thinned as the deadline approaches, a preview of the kind of market dysfunction that happens when a major exchange loses its biggest on-ramp overnight. What’s happening and why Binance’s decision stems from expanded UK and EU sanctions linked to HTX, its founder Justin Sun, and connections to Russia. The compliance crackdown traces back to a wave of regulatory reviews that began in May 2026, when UK regulators flagged concerns about HTX’s affiliations. The restrictions don’t just target HTX. Ten other platforms, including Rapira and EXMO, are also on the list. The common thread: all have been caught in the crosshairs of the EU’s 21st Russia sanctions package, which expanded the scope of entities that regulated exchanges must distance themselves from. As of August 14, no blanket transfer ban is technically live yet. But the market isn’t waiting for the calendar to catch up....