Key Takeaways
- On June 7, HTX will officially remove WLFI’s USD1 stablecoin, automatically converting user balances to USDT at equal value
- World Liberty Financial blocked certain HTX blockchain addresses, referencing sanctions compliance protocols
- This action emerged after UK authorities sanctioned Huobi Global S.A. on May 26
- Prior to the complete removal, HTX had already halted trading for four pairs involving WLFI and USD1 on June 5
- This marks WLFI’s second deployment of its freeze capability, following the September 2025 blacklisting of Justin Sun’s personal wallet
The cryptocurrency exchange HTX, associated with Justin Sun, is proceeding with the removal of USD1, a stablecoin connected to World Liberty Financial (WLFI), which has ties to former President Trump. This decision follows WLFI’s action to freeze blockchain addresses linked to the exchange based on sanctions compliance protocols.
On June 6, HTX made public its intention to complete the USD1 delisting process by June 7. Account holders with USD1 positions will see their holdings automatically converted into USDT on a one-to-one basis, with the resulting funds appearing in their spot trading accounts.
According to HTX’s official statement, this measure was implemented “to reduce potential risks, ensure the safety of user assets, and maintain a fair trading environment.”
Ahead of the full delisting, the exchange had already discontinued four trading combinations on June 5: WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1.
Reasons Behind the Address Freeze
WLFI stated that the freezing of HTX-related addresses was implemented as part of its sanctions compliance verification process. On June 3, the organization issued a public statement emphasizing its maintenance of sanctions control mechanisms and warning that transactions involving sanctioned parties could be restricted.
HTX disputed this characterization, 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 proceeding “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 impacted addresses without delay.
UK Sanctions Background
The context for this confrontation stems from the UK government’s May 26 sanctions against Huobi Global S.A. 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 asserts that Huobi Global S.A. operates as a distinct legal entity from the HTX exchange, and that the UK sanctions have no bearing on its platform operations or customer assets.
WLFI has not issued any public statements specifically addressing the HTX freeze situation.
Justin Sun’s Legal Action
This represents the second instance of WLFI exercising its on-chain freezing authority. In September 2025, the organization blacklisted a cryptocurrency wallet controlled by Tron creator Justin Sun following his transfer of 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 lawsuit alleges the project’s smart contract contains an undisclosed backdoor mechanism enabling the development team to freeze investor holdings without prior notification or authorization.
WLFI responded with its own legal action, claiming Sun orchestrated a defamation operation utilizing social media influencers and automated 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 relationship between the exchange and the Trump-associated cryptocurrency initiative.
