Key Points
- 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, referencing sanctions compliance procedures
- The action follows the United Kingdom’s sanctioning of Huobi Global S.A. on May 26
- Trading for four pairs involving WLFI and USD1 was halted by HTX on June 5
- This marks WLFI’s second use of its blockchain freeze capability, following the September 2025 blacklisting of Justin Sun’s personal wallet
The cryptocurrency exchange HTX, associated with Justin Sun, is removing the USD1 stablecoin from its platform. The stablecoin was issued by World Liberty Financial (WLFI), a digital asset venture connected to Donald Trump. This decision follows WLFI’s blocking of blockchain addresses tied to the exchange, which the project justified as part of sanctions enforcement protocols.
On June 6, HTX publicly confirmed that USD1 would be officially removed from its platform effective June 7. Account holders with USD1 balances will see their holdings automatically converted to USDT on a one-to-one basis, with the resulting funds deposited into their spot trading accounts.
According to HTX’s official statement, the delisting aims “to reduce potential risks, ensure the safety of user assets, and maintain a fair trading environment.”
Prior to announcing the complete removal, HTX had suspended trading for four cryptocurrency pairs on June 5: WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1.
WLFI’s Rationale for Address Restrictions
WLFI stated that it restricted the HTX-associated addresses while conducting sanctions compliance assessments. On June 3, the organization issued a public statement emphasizing its ongoing sanctions controls and warning that transactions involving designated entities could face restrictions.
HTX contested this action, asserting that the frozen holdings “are not assets belonging to any sanctioned entity” but instead represent assets “legally purchased and owned by individual users.”
The platform accused WLFI of acting “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 immediately.
United Kingdom Sanctions Background
The dispute’s context includes the UK government’s designation of Huobi Global S.A. on May 26 as a sanctioned entity. British authorities claimed the organization facilitated over $1.5 billion in transactions connected to Russian sanctions circumvention, involving the Garantex platform and the A7 network.
HTX has consistently argued that Huobi Global S.A. operates independently from the HTX exchange, asserting that the UK’s sanctions action does not impact its platform operations or customer assets.
WLFI has not issued any direct public comments regarding the HTX address restrictions.
Ongoing Legal Proceedings Involving Justin Sun
This incident represents the second occasion WLFI has activated its blockchain freeze mechanism. In September 2025, the organization blocked a cryptocurrency wallet owned by Tron blockchain founder Justin Sun after he transferred approximately $9 million worth of WLFI tokens to multiple addresses, including HTX.
Sun, who serves on HTX’s Global Advisory Board, initiated legal action against WLFI. His lawsuit alleges the project’s smart contract contains an undisclosed backdoor feature enabling the development team to freeze investor holdings without advance notification or authorization.
WLFI responded with its own lawsuit, claiming Sun orchestrated a defamation campaign utilizing social media influencers and automated accounts.
Reports indicate a WLFI investor extended a settlement proposal to Sun, though no formal agreement has been publicly confirmed.
The removal of USD1 from HTX represents a significant escalation in the increasingly contentious and litigious relationship between the cryptocurrency exchange and the Trump-affiliated digital asset project.
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