HTX delists Trump-linked USD1 stablecoin after address freeze

HTX removed the USD1 stablecoin from its trading platform after World Liberty Financial froze certain HTX on-chain addresses, the exchange announced. The delisting took effect Sunday. Deposit and conversion services for USD1 are no longer supported. Trading in USD1 pairs has been suspended and existing USD1 balances will be converted to Tether (USDT) at a 1:1 ratio, with timing and mechanics to be disclosed later.

HTX wrote that the World Liberty Financial project team “unilaterally imposed a freeze on specific HTX on-chain addresses based on sanctions compliance reviews,” and that the action restricted on-chain circulation of WLFI assets tied to those addresses. HTX suspended WLFI/USDT, USD1/USDT, BTC/USD1 and ETH/USD1 trading pairs.

The exchange said the freezes happened without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure or adherence to due process, and called on World Liberty to reverse the freezes. HTX indicated it will pursue measures to protect users’ rights and assets, including possible legal remedies.

World Liberty Financial lists former President Donald Trump and his sons Donald Jr., Eric and Barron as advisers. The project posted on X that “in light of recent sanctions updates, World Liberty Financial maintains risk-based sanctions compliance controls.” World Liberty has not publicly confirmed whether it froze HTX addresses.

The delisting follows legal disputes between the parties. Justin Sun filed suit in April alleging WLFI froze his tokens and threatened to burn them. In May, World Liberty filed a defamation suit against Sun, accusing him of making false statements about the platform and of breaching WLFI token sale terms through prohibited transfers and other conduct.

HTX previously rebranded from Huobi Global and has faced regulatory scrutiny. On May 26, the UK designated an entity named Huobi Global S.A. under sanctions; HTX has maintained that the sanctioned entity is distinct from the online HTX exchange.

HTX plans to announce the exact timing and mechanics of the USD1-to-USDT conversions separately and noted that conversions will occur automatically. USD1-related trading remains suspended to prevent further on-chain circulation linked to the frozen addresses.