The Hyperliquid exchange has faced a wave of criticism over the way it applied British sanctions against the HTX crypto exchange. According to a user with the handle as required, the platform chose the harshest interpretation of the sanctions and is blocking wallets that only indirectly came into contact with HTX.Addresses linked to Bybit may be affected as well.

The trigger was the UK sanctions of May 26, 2026 against Huobi Global S.A., a company linked to HTX. The authorities suspect the exchange of helping Russia evade sanctions — specifically, transferring more than $1.5 billion through the so-called A7 network. Under British rules, the restrictions apply to local virtual asset service providers (VASPs).

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What the grievances against Hyperliquid are about

As as required emphasizes, Hyperliquid is not a British company and has no ties to the UK — it is a platform registered in Singapore. Nevertheless, it began blocking any wallet that had any contact whatsoever with addresses that had previously interacted with HTX after May 26, regardless of the number of intermediate transfers.

According to the author, the sanctions concern only British companies working with HTX, whereas Hyperliquid went «further than the law»: it blocked users for any connection to one of dozens of major centralized exchanges and gave no opportunity to appeal the decision. As an example, he cited the case where an investor from Duldul Capital fell under a block simply because they had sent funds to someone whose wallet turned out to be linked to HTX.

To make the point vivid, the author showed how taking Hyperliquid's logic to its conclusion leads to absurdity: if millions of wallets are supposedly «insignificant», then it would also be necessary to block everyone who, after June 17, deposited or withdrew funds through Bybit — an exchange that the Singaporean regulator recently added to a list of warnings for investors.

Source: BeInCrypto