HTX to Delist USD1 Stablecoin After Dispute With World Liberty Financial Over Frozen Addresses

Crypto exchange HTX has announced plans to remove the USD1 stablecoin from its platform following a dispute with World Liberty Financial (WLFI), the issuer of the Trump linked digital asset. The exchange said eligible USD1 balances will be converted into USDT at a 1:1 ratio after trading support ends.

The delisting is scheduled to take effect on June 7, following the earlier suspension of multiple USD1 trading pairs, including BTC/USD1, ETH/USD1 and USD1/USDT.

Frozen Wallets Trigger Conflict

According to HTX, the dispute began after World Liberty Financial froze several blockchain addresses associated with the exchange. WLFI reportedly cited sanctions compliance reviews as the reason for the action.

HTX criticized the decision, arguing that the affected assets belong to legitimate users and that the freeze was implemented without sufficient communication, transparency or legal justification. The exchange has publicly called on WLFI to reverse the restrictions and restore access to the frozen funds.

Sanctions Concerns Add Complexity

The controversy follows sanctions imposed by the United Kingdom on Huobi Global S.A. in May. British authorities alleged that the company facilitated transactions connected to sanctions evasion involving Russian-linked networks.

HTX has repeatedly stated that the sanctioned entity is separate from the HTX trading platform and that the measures have no impact on its operations or customer assets.

Previous Wallet Freeze Controversy

This is not the first time World Liberty Financial’s freeze capabilities have attracted attention. In 2025, the project froze wallets connected to Tron founder Justin Sun after movements involving WLFI tokens were detected across multiple addresses.

Sun later filed legal action against the project, claiming that its smart contract contained undisclosed controls allowing token freezes without prior notice to holders.

Growing Scrutiny Around USD1

World Liberty Financial has not publicly commented on the latest dispute with HTX. However, the company recently reiterated that it maintains sanctions compliance procedures and may block transactions involving sanctioned entities when required.

The incident highlights the ongoing debate surrounding centralized controls within stablecoin ecosystems, particularly as regulatory oversight and compliance requirements continue to expand across the cryptocurrency industry.