Remember when HTX exchange had (and still has) certain regulatory issues? There have been cases where people transferred funds from HTX to Bybit and had their Bybit accounts frozen.

Today, I witnessed an absolutely crazy situation with one of my own wallets.

I still had a small amount of Dogelon Mars (ELON) on HTX, an ERC-20 token. I withdrew it to my own wallet via the ERC-20 network. My balance on HTX was now zero, so I deleted the app.

Some time later, I opened my 1inch wallet app and saw a notification saying that my address had been blocked.

This is insane.

I deleted and reinstalled 1inch, but when I entered my seed phrase, the wallet wouldn’t even let me access my own wallet.

Meanwhile, the exact same seed phrase works perfectly fine in Trust Wallet, MetaMask, and OKX Wallet. I can access my wallet and see all my funds without any issues.

According to the information on 1inch’s website, it appears they work with a regulatory compliance provider that flags certain wallets as high-risk, potentially due to transactions involving HTX. And apparently, the 1inch app can prevent you from accessing your own wallet based on such a risk assessment.

This is absolutely wild. Your seed phrase is yours, your wallet is yours, and your funds are on the blockchain. Yet a wallet app can deny you access to your own wallet interface because of a transaction history it considers suspicious.

And this is exactly why I believe things will only get worse as regulatory control expands into the crypto industry.

People wanted decentralization. Instead, we may end up with digital control.