The UK's market regulator has filed a lawsuit against global cryptocurrency exchange HTX, alleging that it illegally promoted crypto asset services to UK consumers. HTX's global advisor is Chinese entrepreneur Sun Yuchen.

On Wednesday, the Financial Conduct Authority (FCA) announced that it had initiated civil proceedings against HTX in the High Court in London, citing the exchange's violation of UK financial promotion regulations. Information from the FCA's website indicates that HTX has not obtained authorization to operate in the UK.

“This action is part of our commitment to protect consumers and maintain the integrity of the UK financial markets,” stated an FCA spokesperson, who declined to comment further.

As of publication, HTX had not yet responded to requests for comment.

Sun Yuchen Serves as HTX Advisor Founded in 2013, HTX lists Sun Yuchen as its global advisor. Sun is a significant supporter of the Trump family’s cryptocurrency project, World Liberty Financial, having invested at least $75 million in its crypto tokens.

Blockchain analysts have pointed out that a wallet labeled “SUN” (confirmed to be owned by HTX) is also the largest holder of the meme coin $TRUMP, which was launched by former US President Donald Trump.

The FCA has been working to establish a competitive and sustainable regulatory framework for crypto assets. In 2023, new rules were introduced requiring related firms to obtain FCA authorization and register with the FCA according to anti-money laundering regulations before they can engage in promotional activities.

However, HTX remains on the FCA's "warning list," which identifies firms the regulator advises consumers to avoid trading with.

The FCA's lawsuit targets not only Huobi Global (former name of HTX) but also includes four groups of "unknown individuals," covering all owners, operators, and promotional decision-makers associated with the firm.