TLDR
- HTX announced it will delist WLFI’s USD1 stablecoin on June 7, converting user holdings to USDT at a 1:1 ratio
- WLFI froze specific HTX on-chain addresses, citing sanctions compliance reviews
- The freeze follows the UK’s May 26 sanctions designation of Huobi Global S.A.
- HTX had already suspended four trading pairs involving WLFI and USD1 on June 5
- The dispute is the second time WLFI has used its on-chain freeze function, after blacklisting Justin Sun’s wallet in September 2025
Justin Sun’s crypto exchange HTX is delisting the USD1 stablecoin issued by Trump-linked World Liberty Financial (WLFI). The move comes after WLFI froze on-chain addresses connected to HTX, citing sanctions compliance.
HTX Suspends WLFI and USD1 Trading, Converting All User USD1 to USDT After Freeze
HTX representatives stated that the team behind WLFI, the Trump family-backed crypto project, recently froze HTX-related on-chain addresses citing U.K. sanctions screening, without sufficient prior… pic.twitter.com/7R3mtIQW6o
— Wu Blockchain (@WuBlockchain) June 6, 2026
HTX announced on June 6 that USD1 would be officially delisted on June 7. Users who held USD1 on the platform will have their balances converted to USDT at a 1:1 exchange rate, with the converted funds credited to their spot accounts.
The exchange said the decision was made “to reduce potential risks, ensure the safety of user assets, and maintain a fair trading environment.”
Before the delisting, HTX had already suspended four trading pairs on June 5: WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1.
Why WLFI Froze the Addresses
WLFI said it froze the HTX-linked addresses as part of sanctions compliance reviews. On June 3, the project posted a general reminder that it maintains sanctions controls and that transactions involving sanctioned entities may be blocked.
HTX pushed back, saying the frozen assets “are not assets belonging to any sanctioned entity” but rather assets “legally purchased and owned by individual users.”
The exchange said WLFI acted “without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure, or adherence to due process.”
HTX called on WLFI to immediately unfreeze the affected addresses.
The UK Sanctions Connection
The background to this dispute involves the UK’s May 26 sanctions designation of Huobi Global S.A. UK officials alleged the entity helped facilitate more than $1.5 billion in flows tied to Russian sanctions evasion, linked to the Garantex exchange and the A7 network.
HTX maintains that Huobi Global S.A. is a separate entity from the HTX platform, and that the UK designation has no effect on its operations or user funds.
WLFI has not publicly addressed the HTX freeze directly.
Justin Sun’s Ongoing Lawsuit
This is not the first time WLFI has used its on-chain freeze function. In September 2025, the project blacklisted a wallet belonging to Tron founder Justin Sun after he moved roughly $9 million in WLFI tokens to addresses including HTX.
Sun, who sits on HTX’s Global Advisory Board, filed a lawsuit against WLFI. He claims the project’s smart contract includes a hidden backdoor that allows the team to freeze investor tokens without notice or consent.
WLFI filed a countersuit, accusing Sun of running a defamation campaign through social media influencers and bots.
A settlement offer was reportedly made to Sun by a WLFI investor, but no agreement has been announced.
The delisting of USD1 from HTX marks a further escalation in what has become a public and legal dispute between the exchange and the Trump-linked crypto project.
