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The HTX withdrawal freeze likely occurred after the UK sanctions were announced, and Chainalysis flagged HTX addresses with AML (Anti-Money Laundering) flags. Most larger CEXs and institutions use Chainalysis for deposits and withdrawals, so theoretically, this shouldn't be related to the specific exchange you're receiving from. If one exchange freezes your funds, all exchanges will likely freeze them. HTX claims Chainalysis has mistaken the recipient and is communicating with them, but this cannot be verified in the short term. For users:
1) Wait for communication between HTX and Chainalysis to avoid further complications from being frozen.
If you're still worried, there are two options:
2) Transfer funds on-chain through cross-chain bridges, smaller exchanges, and protocols to launder them. This method essentially constitutes money laundering, but it's highly unlikely to cause problems unless HTX is ultimately classified as illicit and your amount is substantial.
3) If the amount is small and you need it urgently, withdraw the funds directly.
P.S.: If you want to transfer funds to an exchange, it's best not to transfer directly to your usual exchange. Use a less frequently used exchange as an intermediary, and don't leave any balance on the intermediary exchange to avoid future issues.
Although the probability is low.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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