HTX delists Trump's USD1 stablecoin after World Liberty freezes addresses
In brief
- HTX delisted USD1 and suspended four trading pairs after World Liberty Financial froze on-chain addresses
- World Liberty cited sanctions compliance; HTX disputed the freeze and vowed legal action
- Dispute stems from Justin Sun's April lawsuit against World Liberty and May countersuit for defamation
The freeze and delisting
HTX delisted USD1 to safeguard user assets following the address freeze. The exchange said its addresses were frozen without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure or adherence to due process.
Deposit and conversion services for USD1 are no longer supported. Users' USD1 holdings will be converted to Tether (USDt) at a 1:1 ratio. HTX also suspended WLFI/USDT, USD1/USDT, BTC/USD1 and ETH/USD1 trading pairs.
HTX called on World Liberty Financial to reverse the freeze and said it will pursue legal remedies to safeguard users' rights and interests.
World Liberty's compliance stance
World Liberty Financial stated it unilaterally imposed the freeze on specific HTX addresses based on sanctions compliance reviews. The platform posted on X that it maintains risk-based sanctions compliance controls in light of recent sanctions updates.
The timing follows the UK's May 26 sanctions designation of HTX's former entity, Huobi Global S.A., based on claims the exchange supported Russia's government through financial services. HTX disputed the relevance, saying the sanctioned entity is distinct from the online HTX exchange and the designation should not impact the platform.
Legal dispute escalation
Sun sued World Liberty in April, claiming the platform froze his tokens and threatened to burn them without proper justification. World Liberty countersued in May for defamation, alleging Sun made false statements about the platform and violated WLFI token sale terms.
World Liberty counts President Trump and his three sons—Donald Jr., Eric, and Barron—as advisers. Sun reportedly owns HTX and serves on the exchange's global advisory board. The dispute sits at the intersection of crypto regulation, sanctions enforcement, and high-profile legal conflict.
