HTX removed USD1, a stablecoin issued by Trump-linked World Liberty Financial, after the exchange said WLFI froze some on-chain addresses associated with the platform.
summary
- HTX removed USD1 after freezing wallet addresses linked to the exchange.
- World Liberty Financial cited sanctions compliance controls.
- HTX said USD1 user balances will be converted into USDT at a 1:1 ratio.
- The move increases Justin Sun’s feud with a cryptocurrency project linked to Trump.
Stock exchange linked to cryptocurrency entrepreneur Justin Sun, He said The freeze limited the movement of assets linked to those addresses. HTX said it removed USD1 to protect user assets and reduce trading risks.
HTX removes USD1 after freezing the wallet
HTX said World Liberty Financial “unilaterally imposed a freeze” on specific HTX addresses on the chain after verifying compliance with the sanctions.
The stock exchange said the measure restricted the trading of certain assets linked to WLFI. It also said that the freeze came without sufficient prior communications, a clear legal basis or due process.
HTX has suspended US dollar deposits and transfer services. It also suspended trading of the WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 pairs.
Eligible USD1 balances will be converted into Tether’s USDT at a 1:1 ratio, the exchange said. HTX said more details about timing will be shared separately.
World Liberty cites sanctions controls
World Liberty Financial has not publicly confirmed whether it has frozen addresses linked to HTX.
“In light of recent sanctions updates, World Liberty Financial maintains risk-based sanctions compliance controls,” the project posted on X.
The dispute comes after UK sanctions Announce on May 26 against Huobi Global SA, previously associated with the HTX brand. British authorities said they had reasons to suspect that the entity supported Russia through financial services.
HTX declined to link to its existing online exchange. It said Huobi Global SA is separate from the HTX operating platform and should not affect users.
Justin Sun feud adds pressure
The USD1 deletion adds another layer to the public battle between Justin Sun and World Liberty Financial.
As previously reported by crypto.news, Sun and World Liberty have entered into a legal dispute after WLFI froze Sun’s tokens. sun File a lawsuit against The project in April, claiming that its assets had been frozen and threatened without good reason.
The World Freedom Organization later sued Sun for defamation. Project He claimed He made false statements and violated WLFI token selling rules through alleged transfers, short selling and informal purchases.
Sun has been associated with HTX and served on its global advisory board. The exchange said it may seek legal remedies to protect user rights.
USD1 faces a new confidence test
The removal of USD1 from HTX comes at a difficult time for stablecoin issuers and cryptocurrency exchanges. The case illustrates how compliance actions can quickly impact token access, trading pairs, and user balances.
The stablecoin has gained attention due to its association with World Liberty Financial, a project linked to US President Donald Trump and his family. Donald Trump, Donald Trump Jr., Eric Trump and Barron Trump are listed as advisors.
HTX said its main goal is to protect users while asking WLFI to reverse the freeze. Currently, USD1 trading on HTX remains suspended, and users must wait for the exchange to update the conversion.
