Author:Bitrace

Original link: https://mp.weixin.qq.com/s/b2yoXdr3ZIb4vq5I4Zga

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ON 26 MAY 2026, THE BRITISH GOVERNMENT ISSUED A NEW ROUND OF SANCTIONS AGAINST RUSSIA, WHICH INCLUDED HUOBI GLOBAL S.A. AS THE SUBJECT OF SANCTIONS, I.E. THE ENTITY THAT HAD BEEN RENAMED HTX, ON THE GROUNDS THAT IT WAS SUSPECTED OF PROVIDING FINANCIAL SERVICES, FUNDS OR ECONOMIC RESOURCES THROUGH THE PROVISION OF FINANCIAL SERVICES TO A7 LIMITED LIABILITY COMPANY。

THIS LED TO THE ANNOUNCEMENT BY SEVERAL ENCRYPTED CURRENCY EXCHANGES OF WIND CONTROL REQUIREMENTS FOR FUNDS FROM HTX BUSINESS ADDRESSES, AND THE FREEZING OF ACCOUNTS BY SOME USERS FOR THE COLLECTION OF HTX COINS, THEREBY RAISING INDUSTRY CONCERNS ABOUT THE RISKS OF SANCTIONS。

The purpose of this paper is to disclose data on financial links between the current mainstream trading platform and sanctioned entities, such as Huione and Xinbi, based on Bitrace ' s intelligence and investigation of organized crime networks in South-East Asia。

Money-sharing and new currency

The Huione/Haowang/Tudou Guarantee, under the banner of Huione Group, had been the largest centre for illegal and encrypted money transactions in South-East Asia, providing assistance for criminal activities, including fraud, illegal Internet gaming, and human trafficking, until one of the leaders was extradited to China。

The New Currency Guarantee for the main operation in the new currency corresponds to the type of guarantee for the money to be transferred from trade number two to number one after the closure of the group. Although the entity was also subjected to sanctions from the British Government in March 2026, business was not affected and trading activity was growing rapidly and 92.48 per cent of the local illegal trading guarantee market was now acquired。

HOW THE GUARANTEE MARKET POLLUTES CEX

Typical secured market transactions include specialty (Private Group) transactions and public group transactions。

The New Currency Guarantee for the main operation in the new currency corresponds to the type of guarantee for the money to be transferred from trade number two to number one after the closure of the group. Although the entity was also subjected to sanctions from the British Government in March 2026, business was not affected and trading activity was growing rapidly and 92.48 per cent of the local illegal trading guarantee market was now acquired。

In the context of a trade-off, one or both of the parties in the sale would have to pay a USDT deposit equal to the value of the transaction to the transaction-guaranteed platform, which would return the deposit and collect a commission after the transaction had been completed; in the case of a trade-off, a large deposit would be paid by the party providing the transaction-provider and would lease the platform network group on a monthly basis, in the form of a report (Pre-report) mechanism providing services to multiple customers and earning revenue。

In short, in both scenarios, the funds charged by the trading guarantee platform are either a deposit equivalent to the amount of the temporary transaction, or a deposit or monthly rental fee paid by a group of businessmen。

If one of the parties to the transaction uses the exchange ' s hot wallet to take up the pledge or the exchange ' s user address to place the pledge, the risk of sanctions may lead to contamination of the trading platform。

Money-changing, new money-polluting

Bitrace carried out two dimensions between 2021 and 2026, based on the transfer of the money-transfer guarantee and the New Currency guarantee business address。

THE DATA SHOW THAT, DURING THE STATISTICAL CYCLE, MAJOR TRADING PLATFORMS COLLECTED A TOTAL OF 349 MILLION USDTS FROM THE MONEY TRANSFER GUARANTEE AND THE NEW CURRENCY GUARANTEE, AND THAT SINCE PEAKING IN APRIL 2024, INCOME LEVELS HAVE GRADUALLY DECREASED, AND THE CURRENT LEVEL OF VENTURE CAPITAL HAS BEEN REDUCED TO 2021 LEVELS, WITH LESS THAN 2 MILLION USDTS PER MONTH FOR ALMOST THREE MONTHS。

DURING THE STATISTICAL CYCLE, TRANSFERS OF FUNDS FROM MAJOR TRADING PLATFORMS TO MONEY TRANSFER GUARANTEE AND NEW CURRENCY GUARANTEE TOTALLED 441 MILLION USDT, WITH A TREND IN SIZE CONSISTENT WITH THE TRANSFER。

The classification according to the location of the funding of the Guarantee Platform can be seen that 80 per cent, 10 per cent and 7 per cent of the funds were obtained by OKX, Binance and HTX, respectively, indicating the preference of the black-and-shell-producing community in South-East Asia for a platform for encrypted monetary transactions with Chinese backgrounds。

Conclusions

1. Despite sanctions, the security platform for illegal encrypted currency transactions has not ceased to operate and the volume of business is virtually unaffected

2. ORGANIZED CRIME NETWORK ENTITIES IN SOUTH-EAST ASIA ARE WITHDRAWING FROM ENCRYPTED MONEY TRADING PLATFORMS, BUT REMAIN LARGE, WITH APPROXIMATELY 4 MILLION USDT TRANSACTIONS REMAINING AT RISK EACH MONTH BETWEEN SECURE AND TRADING PLATFORMS

Three trading platforms, 3, OKX, Binance and HTX, need to pay attention to this sanction threat and properly process the accounts that receive these funds to address possible future policy risks。