On June 8, 2026, HTX – the crypto exchange associated with entrepreneur Justin Sun – officially delisted USD1, the stablecoin backed by World Liberty Financial (WLFI), a project advised by Donald Trump and his sons. The move marks a dramatic escalation in a public feud between the exchange and the Trump-linked project after HTX claimed its on-chain addresses were unilaterally frozen.
Why HTX Decided to Delist USD1
HTX stated that World Liberty Financial froze specific on-chain addresses belonging to the exchange without prior notice, sufficient legal grounds, or proper communication. This sudden freeze severely restricted the circulation of WLFI-related assets, directly impacting user funds and platform operations.
In response, HTX took decisive action by delisting USD1 to protect its users. The exchange emphasized that it could not tolerate a project imposing restrictions without transparency or due process. All deposit, withdrawal, and conversion services for USD1 were immediately suspended. Users’ USD1 holdings will be automatically converted to Tether (USDT) at a 1:1 ratio, with exact timing to be announced later. Additionally, trading pairs including WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 were halted to prevent potential liquidity issues and market volatility.
This incident highlights the growing tensions between centralized exchanges and politically connected crypto projects, especially as global regulatory scrutiny intensifies.
Background of Sanctions and Ongoing Controversy
Last month, on May 26, 2026, the United Kingdom imposed sanctions on HTX (formerly Huobi Global), alleging the platform may have provided financial services to the Russian government. HTX strongly refuted the claims, clarifying that the sanctioned entity – Huobi Global S.A. – is a separate legal entity and has no connection to the current HTX exchange.
Despite this defense, the UK sanctions created significant pressure on HTX’s reputation and partnerships. The timing of the WLFI freeze has raised questions about whether broader geopolitical and compliance issues are influencing decisions in the crypto space. Many observers view this conflict as more than a simple technical dispute – it reflects a larger power struggle involving high-profile political figures and major industry players.
HTX has publicly called on World Liberty Financial to reverse the freeze and restore normal operations, warning that failure to do so may lead to legal action.
Impact on Users and HTX’s Next Steps
The delisting took effect on Sunday, June 8. HTX assured users that their assets remain safe and will be converted to the widely used stablecoin USDT. The exchange promised to provide detailed timelines and support throughout the conversion process to minimize any inconvenience.
Beyond immediate protective measures, HTX declared it would pursue all available legal remedies to defend user rights and challenge what it described as an unfair and non-transparent freeze. The situation remains fluid, as World Liberty Financial has not issued a direct response regarding the specific HTX address freezes, only stating that it maintains “risk-based sanctions compliance controls.
”This event serves as a reminder to crypto users about counterparty risk when holding project-specific stablecoins, especially those tied to politically exposed persons. It also underscores how quickly relationships between exchanges and token issuers can deteriorate in today’s highly regulated environment.
Source: HTX Official Announcement
