The exchange suspended USD1-related services and trading pairs, and will convert user holdings to USDT at a 1:1 ratio. HTX claims the address freeze was implemented without sufficient communi
The exchange suspended USD1-related services and trading pairs, and will convert user holdings to USDT at a 1:1 ratio. HTX claims the address freeze was implemented without sufficient communication or legal justification and called on WLFI to reverse the restrictions.
HTX announced the delisting of the Trump family-backed stablecoin USD1 after a dispute with World Liberty Financial (WLFI), the decentralized finance platform associated with US President Donald Trump and his family. The exchange claimed that WLFI froze certain HTX-linked blockchain addresses without sufficient justification, which pushed the platform to remove support for the stablecoin and related trading pairs.
According to a statement that was released by HTX, the WLFI team imposed restrictions on specific on-chain addresses connected to the exchange as part of sanctions compliance reviews. HTX argued that the action was taken unilaterally and without adequate communication, legal basis, or due process. The exchange said the freeze limited the circulation of certain WLFI-related assets and negatively affected users whose funds were associated with the impacted addresses.
As a result, HTX suspended deposits and conversion services for USD1 and removed several trading pairs involving the stablecoin, including USD1/USDT, BTC/USD1, ETH/USD1, and WLFI/USDT. The exchange also stated that users holding USD1 would have their balances converted to Tether’s USDT stablecoin on a one-to-one basis.
The dispute comes shortly after UK authorities sanctioned Huobi Global S.A., an entity associated with the HTX brand, alleging that it had provided financial services that supported the Russian government. HTX maintains that the sanctioned company is legally distinct from the online HTX exchange and argues that the sanctions should not affect its operations. The exchange suggested that WLFI’s decision to freeze addresses may have been linked to these sanctions developments.
HTX criticized the asset freeze as an infringement on the rights of both the platform and its users. The exchange called on World Liberty Financial to reverse the restrictions and warned that it may pursue legal action to protect user interests if the matter is not resolved.
The latest dispute now adds to the ongoing legal battle between HTX adviser and crypto entrepreneur Justin Sun and World Liberty Financial. Sun previously sued the platform, alleging that it froze his tokens and threatened to burn them without proper justification. In response, World Liberty filed a defamation lawsuit against Sun, and accused him of making false statements and violating the terms of the WLFI token sale through prohibited transactions and other activities.
