Key Takeaways
- HTX will remove WLFI’s USD1 stablecoin from its platform on June 7, automatically converting user balances to USDT at parity
- World Liberty Financial blocked certain HTX blockchain addresses, claiming the action was required for sanctions compliance verification
- The address freeze occurred after UK authorities sanctioned Huobi Global S.A. on May 26
- HTX previously halted trading for four pairs involving WLFI tokens and USD1 on June 5
- This marks WLFI’s second use of its token freezing capability, following the blacklisting of Justin Sun’s personal wallet in September 2025
The cryptocurrency trading platform HTX, operated by Justin Sun, is removing USD1, the stablecoin created by World Liberty Financial (WLFI), which has connections to Donald Trump. This action follows WLFI’s decision to freeze blockchain addresses associated with HTX, a move justified by sanctions compliance requirements.
On June 6, HTX revealed that USD1 would be completely removed from the platform by June 7. Platform users holding USD1 will see their holdings automatically swapped for USDT at a one-to-one ratio, with the resulting USDT deposited into their spot trading accounts.
According to HTX’s statement, the delisting decision was implemented “to reduce potential risks, ensure the safety of user assets, and maintain a fair trading environment.”
Prior to the complete removal, HTX had suspended trading activity for four market pairs on June 5: WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1.
WLFI’s Justification for the Address Freeze
World Liberty Financial stated it froze the blockchain addresses linked to HTX as part of its sanctions compliance procedures. On June 3, the organization issued a public notice reminding users that it enforces sanctions controls and that transactions connected to sanctioned parties could be prevented.
HTX disputed this characterization, asserting that the frozen digital assets “are not assets belonging to any sanctioned entity” but instead represent assets “legally purchased and owned by individual users.”
The exchange accused WLFI of taking action “without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure, or adherence to due process.”
HTX has demanded that WLFI reverse the freeze on the affected blockchain addresses without delay.
UK Sanctions Background
The controversy stems from UK authorities designating Huobi Global S.A. under sanctions on May 26. British officials claimed the entity enabled over $1.5 billion in transactions related to Russian sanctions circumvention, with ties to the Garantex platform and the A7 network.
HTX insists that Huobi Global S.A. operates as a completely separate legal entity from the HTX exchange, and that the UK’s sanctions decision does not impact its platform operations or customer assets.
World Liberty Financial has not issued any public statement specifically addressing the HTX address freeze.
Justin Sun’s Legal Battle Continues
This incident represents the second occasion WLFI has activated its token freezing mechanism. In September 2025, the organization blacklisted a cryptocurrency wallet controlled by Tron creator Justin Sun after he transferred approximately $9 million worth of WLFI tokens to various addresses, including HTX.
Sun, who serves on HTX’s Global Advisory Board, initiated legal proceedings against WLFI. His complaint alleges the project’s smart contract contains an undisclosed backdoor feature enabling the development team to freeze investor holdings without warning or authorization.
WLFI responded with its own countersuit, alleging Sun orchestrated a smear campaign utilizing paid social media influencers and automated bot accounts.
Reports indicate that a WLFI investor extended a settlement proposal to Sun, though no formal agreement has been publicly confirmed.
The removal of USD1 from HTX represents another chapter in the increasingly contentious public and legal confrontation between the cryptocurrency exchange and the Trump-associated digital asset venture.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
