Hyperliquid Faces Backlash Over HTX-Linked Wallet Blocks Amid Regulatory Concerns

The decentralized finance (DeFi) platform Hyperliquid has come under fire for its strict restrictions on digital wallets, blocking accounts with indirect connections to the centralized exchange HTX. The controversy stems from the UK's sanctioning of Huobi Global SA, a firm linked to HTX, which allegedly facilitated the transfer of over $1.5 billion in digital assets to Russia through the A7 payment network.

According to documentation shared by analyst 'as required', Hyperliquid automatically restricts any address that registers intermediate transfers with HTX after May 26, 2026, regardless of the number of hops on the blockchain.

An investor linked to Duldul Capital reported having their funds immobilized due to a personal loan to someone whose wallet had previous interaction with the sanctioned platform. Regulatory compliance experts confirmed that analysis data providers like Chainalysis or TRM Labs provide informative risk tags, but the final determination to apply blocks falls solely on the protocol operators.

The platform's rigid policies have generated alerts regarding the regulatory situation of other large global firms, including Bybit Fintech Limited, which was added to Singapore's Investor Alert List by the Monetary Authority of Singapore (MAS) on June 17, 2026. Analysts suggest that if Hyperliquid maintains its strict logic, wallets that operated with Bybit after the warning could face similar restriction scenarios in the short term.