HTX delists USD1 stablecoin, converts balances to USDT
In brief
- HTX delists USD1 stablecoin, converts retail balances to USDT at 1:1 rate June 7
- World Liberty Financial blocked HTX-controlled blockchain addresses, triggering delisting
- UK sanctions on Huobi Global cited $1.5B in illicit transaction processing
- HTX leadership claims platform operates independently from sanctioned parent entity
The delisting and conversion
HTX suspended trading for four USD1-related pairs as of June 5, 2026 at 13:00 UTC: WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1. The exchange said the move was necessary to safeguard users' assets and preserve market fairness.
HTX management claims the blocked wallets contain standard retail customer funds rather than illicit capital. Molly Fu, an HTX spokesperson, stated that "the locked capital belongs exclusively to ordinary retail buyers and possesses no connection to sanctioned actors."
The wallet freeze and retaliation
The conflict centers on World Liberty Financial blocking access to several HTX-controlled blockchain addresses. HTX views this as direct retaliation and argues the action harmed ordinary traders who had no involvement in any regulatory dispute.
World Liberty Financial, launched in late 2024 by members of the Trump family, manages both the USD1 stablecoin and its companion WLFI governance token. The project's architecture allows administrators to unilaterally halt token transfers, a power it has deployed before. Justin Sun, founder of the Tron blockchain network, was previously subject to this wallet freeze mechanism and is a global advisor to HTX.
Regulatory backdrop
The dispute arose in the wake of broader regulatory pressure. On May 26, the UK's Foreign, Commonwealth, and Development Office imposed sanctions on Huobi Global S.A., a Panamanian corporate entity, citing alleged processing of roughly $1.5 billion in illicit transaction volume connected to the A7 payments network and Garantex.
HTX representatives argue that the digital asset platform operates entirely independently from Huobi Global S.A. The distinction matters because HTX customers face conversion of their USD1 holdings—a direct consequence of the regulatory and commercial friction between the two projects.
Frequently asked questions
Why is HTX delisting USD1?
HTX delisted USD1 after World Liberty Financial blocked access to several HTX-controlled blockchain addresses. HTX management views this as retaliation and cited the need to safeguard retail customer assets and preserve market fairness.
What happens to my USD1 balance on HTX?
Beginning June 7, 2026, HTX will systematically convert all eligible retail customer balances of USD1 into Tether (USDT) at a one-to-one valuation. The exchange suspended USD1 trading pairs on June 5 to prevent further trading.
Does HTX operate independently from sanctioned Huobi Global?
HTX representatives argue the contemporary digital asset platform operates entirely independently from Huobi Global S.A., the Panamanian entity that faced UK sanctions in May for processing $1.5 billion in illicit volume.
