HTX Exchange Removes Trump-Linked USD1 Stablecoin Following Address Freeze by WLFI

Key Points

• HTX will remove WLFI’s USD1 stablecoin from its platform on June 7, automatically converting user balances to USDT at parity
• World Liberty Financial blocked certain HTX blockchain addresses, referencing sanctions compliance procedures
• The action follows UK sanctions imposed on Huobi Global S.A. on May 26
• HTX previously halted trading for four pairs involving WLFI and USD1 on June 5
• This marks WLFI’s second use of its freeze mechanism, following a September 2025 blacklist of Justin Sun’s personal wallet

The cryptocurrency exchange HTX, associated with Justin Sun, is removing the USD1 stablecoin from World Liberty Financial (WLFI), a project connected to former President Trump. This decision follows WLFI’s freezing of blockchain addresses linked to the exchange, with sanctions compliance cited as the reason.

On June 6, HTX revealed that USD1 would be officially removed from the platform the following day. The exchange will automatically convert all user-held USD1 to USDT at a 1:1 ratio, with the resulting funds deposited into users’ spot trading accounts.

According to HTX’s statement, the delisting aims “to reduce potential risks, ensure the safety of user assets, and maintain a fair trading environment.”

Prior to announcing the complete removal, HTX had suspended trading operations for four cryptocurrency pairs on June 5: WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1.

WLFI’s Rationale for the Address Freeze

World Liberty Financial stated that it froze the HTX-associated blockchain addresses as part of its sanctions compliance review process. On June 3, the organization issued a general statement emphasizing its maintenance of sanctions controls and warning that transactions involving sanctioned parties could face restrictions.

HTX responded forcefully, asserting that the frozen digital assets “are not assets belonging to any sanctioned entity” but instead represent assets “legally purchased and owned by individual users.”

The exchange criticized WLFI for acting “without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure, or adherence to due process.”

HTX has demanded that WLFI immediately reverse the freeze on the affected blockchain addresses.

UK Sanctions in the Background

The context surrounding this confrontation includes the United Kingdom’s May 26 sanctions designation of Huobi Global S.A. British authorities alleged that this entity facilitated over $1.5 billion in transactions connected to Russian sanctions evasion, with ties to the Garantex exchange and the A7 network.

HTX asserts that Huobi Global S.A. operates as a completely separate entity from the HTX exchange platform, and that the UK’s designation has no impact on its operations or customer assets.

World Liberty Financial has not issued a public statement specifically addressing the HTX address freeze.

Justin Sun’s Legal Action Against WLFI

This incident represents the second instance of WLFI employing its on-chain freeze capability. In September 2025, the organization blacklisted a cryptocurrency wallet belonging to Tron blockchain founder Justin Sun after he transferred approximately $9 million worth of WLFI tokens to various addresses, including HTX.

Justin Sun, who serves on HTX’s Global Advisory Board, initiated legal proceedings against WLFI. His lawsuit alleges that the project’s smart contract contains an undisclosed backdoor mechanism enabling the team to freeze investor tokens without prior notification or approval.

WLFI responded by filing a countersuit, alleging that Sun orchestrated a defamation campaign utilizing social media influencers and automated bot 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 significant development in the escalating public and legal confrontation between the exchange and the Trump-affiliated cryptocurrency venture.