Crypto exchange HTX announced it will delist World Liberty Financial’s USD1 stablecoin and convert eligible user holdings into Tether’s USDT at a 1:1 ratio, escalating a standoff over frozen onchain addresses linked to the exchange. The delisting takes effect at 3:00 UTC on June 7, following an earlier suspension of trading for the WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 pairs as of 13:00 UTC on June 5.
The conflict stems from World Liberty Financial (WLFI)—the Trump family–associated project behind the WLFI governance token and USD1 stablecoin—unilaterally freezing specific HTX addresses, citing sanctions compliance reviews. HTX said the freeze lacked sufficient prior communication, contractual or legal grounds, transparent disclosure, or due process, directly infringing on users’ rights. Spokesperson Molly Fu emphasized the affected assets "are not assets belonging to any sanctioned entity" but "assets legally purchased and owned by individual users."
The freeze followed the UK’s May 26 sanctions designation of Huobi Global S.A., which officials alleged facilitated over $1.5 billion in Russian sanctions evasion via the A7 network and Garantex exchange. HTX maintains Huobi Global S.A. is a distinct entity from its platform and that the UK action has no impact on its operations or user funds.
This marks the second high-profile use of WLFI’s onchain freeze function. In September 2025, the project blacklisted a wallet linked to Tron founder Justin Sun after he moved roughly $9 million of WLFI between addresses, including HTX, where he serves on the Global Advisory Board. Sun has since sued, alleging a hidden backdoor in the WLFI contract allowing freezes without notice or consent. WLFI has not publicly addressed the HTX freeze, only noting on June 3 that it maintains sanctions controls and may block transactions involving designated entities.
The delisting underscores the growing tension between exchange operations and stablecoin issuer controls, raising questions about freeze authority, sanctions interpretation, and asset custody risks for retail users.
