TLDR
- HTX delisted USD1 after accusing World Liberty Financial of freezing specific on-chain addresses without prior notice.
- The exchange converted all USD1 user holdings to $USDT at a 1:1 ratio and suspended related trading pairs.
- HTX said the freeze lacked contractual grounds, transparent disclosure, and adherence to due process standards.
- The United Kingdom sanctioned Huobi Global S.A., while HTX said the entity differs from its current platform.
- Justin Sun and World Liberty Financial are engaged in ongoing lawsuits over token freezes and alleged violations.
HTX removed the USD1 stablecoin after accusing World Liberty Financial of freezing its addresses without proper notice. The exchange said the action restricted certain on-chain assets and affected user access. Consequently, HTX converted user holdings to $USDT at a 1:1 ratio and halted related trading pairs.
HTX Halts USD1 Trading and Converts Holdings to $USDT
HTX said World Liberty Financial imposed a freeze on specific on-chain addresses following sanctions compliance reviews. The exchange stated that the project team acted unilaterally and limited the circulation of certain assets. Therefore, HTX delisted USD1 to protect user balances and platform operations.
The delisting took effect on Sunday, and deposit services for USD1 stopped immediately. HTX also suspended WLFIUSDT, USD1/USDT, BTCUSD1, and ETHUSD1 pairs on its platform. It confirmed that users’ USD1 balances will convert to $USDT at a 1:1 rate, with further details pending.
HTX argued that the freeze occurred “without sufficient prior communication” or contractual grounds. The exchange said the action lacked transparent disclosure and failed to follow due process standards. As a result, HTX called on World Liberty Financial to reverse the freeze and restore access.
The platform stated it will take steps to safeguard users’ rights and interests. It added that those measures may include pursuing legal remedies where necessary. However, it did not specify a timeline for further action.
Sanctions Context and Ongoing Legal Disputes
Last month, the United Kingdom sanctioned HTX, formerly known as Huobi Global, on May 26. Authorities said they had “reasonable grounds to suspect” the exchange supported Russia’s government through financial services. In response, HTX said the sanctioned entity, Huobi Global S.A., differs from the online HTX exchange.
The exchange maintained that the designation should not affect its current platform operations. It clarified that HTX operates separately from the named entity under sanction review. Therefore, it rejected claims linking the sanctions to its present activities.
World Liberty Financial has not publicly confirmed whether it froze HTX addresses. However, it posted on X that it maintains “risk-based sanctions compliance controls” following recent updates. The project counts U.S. President Donald Trump and his sons as advisers.
Justin Sun, who reportedly owns HTX and serves on its advisory board, filed a lawsuit against World Liberty in April. He claimed the platform froze his tokens and threatened to burn them without justification. In May, World Liberty sued Sun for defamation, alleging false statements and violations of token sale terms.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
