UK Brings First-of-Its-Kind Case Against Crypto Firm Linked to Trump Backer

The UK’s Financial Conduct Authority (FCA) has filed a High Court lawsuit against crypto exchange HTX, alleging the platform unlawfully promoted cryptoasset services to consumers in breach of the country’s financial promotions regime, the Financial Times reported.

The case is the first time the FCA has taken such an action against a crypto company, according to the report.

“This action is part of our commitment to protect consumers and uphold the integrity of UK financial markets,” the regulator said in a statement cited by the FT, adding that the agency “will not hesitate to take action where firms appear to be breaching our rules.”

The watchdog has listed HTX and its prior brand Huobi on its warning roster of businesses it believes are targeting UK customers without the required authorization, the newspaper said.

HTX counts Chinese-born crypto entrepreneur Justin Sun as an adviser. Sun also runs BitTorrent and Tron, which issues the TRX token.

In 2023, the U.S. Securities and Exchange Commission sued Sun and three of his companies for alleged fraud, including wash trading. In February, a federal court agreed to pause the case at the joint request of the SEC and Sun, the newspaper said.

Sun has also invested heavily in digital-asset ventures linked to U.S. President Donald Trump, spending $75 million on tokens issued by the Trump family’s World Liberty Financial shortly before the SEC suit was paused. He has spent millions buying the president’s memecoin, becoming its top holder and receiving invitations to the White House and Trump’s Virginia golf club in May, the Financial Times reported.