Justin Sun’s HTX drops USD1 as WLFI freeze fight grows

HTX has delisted USD1, the stablecoin issued by Trump-linked World Liberty Financial, after the exchange said WLFI froze certain on-chain addresses linked to the platform.

The exchange, associated with crypto entrepreneur Justin Sun, said the freeze limited the movement of assets tied to those addresses. HTX said it removed USD1 to protect user assets and reduce trading risk.

HTX removes USD1 after wallet freeze

HTX said World Liberty Financial “unilaterally imposed a freeze” on specific HTX on-chain addresses following sanctions compliance checks.

The exchange said the action restricted circulation of some WLFI-linked assets. It also said the freeze came without enough prior communication, clear legal basis, or due process.

HTX has suspended USD1 deposits and conversion services. It also halted trading for WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 pairs.

The exchange said eligible USD1 balances will be converted into Tether’s USDT at a 1:1 rate. HTX said more details on timing will be shared separately.

World Liberty cites sanctions controls

World Liberty Financial has not publicly confirmed whether it froze HTX-linked addresses.

The project posted on X that “in light of recent sanctions updates, World Liberty Financial maintains risk-based sanctions compliance controls.”

The dispute follows UK sanctions announced on May 26 against Huobi Global S.A., formerly linked to the HTX brand. UK authorities said they had grounds to suspect the entity supported Russia through financial services.

HTX rejected the link to its current online exchange. It said Huobi Global S.A. is separate from the operating HTX platform and should not affect users.

Justin Sun dispute adds pressure

The USD1 delisting adds another layer to the public fight between Justin Sun and World Liberty Financial.

As previously reported by crypto.news, Sun and World Liberty have been locked in a legal dispute after WLFI froze Sun’s tokens. Sun sued the project in April, claiming his assets were frozen and threatened without proper reason.

World Liberty later sued Sun for defamation. The project claimed he made false statements and broke WLFI token sale rules through alleged transfers, short-selling, and straw purchases.

Sun has been linked to HTX and has served on its global advisory board. The exchange has said it may seek legal remedies to protect user rights.

USD1 faces fresh trust test

USD1’s removal from HTX comes at a difficult time for stablecoin issuers and crypto exchanges. The case shows how compliance actions can quickly affect token access, trading pairs, and user balances.

The stablecoin had gained attention because of its link to World Liberty Financial, a project tied to U.S. President Donald Trump and his family. Donald Trump, Donald Trump Jr., Eric Trump, and Barron Trump are listed as advisers.

HTX said its main goal is to protect users while asking WLFI to reverse the freeze. For now, USD1 trading on HTX remains suspended, and users must wait for the exchange’s conversion update.