What to know:
- HTX delisted USD1 after World Liberty froze exchange-linked addresses.
- Justin Sun and World Liberty remain locked in lawsuits.
- The UK sanctions controversy added pressure as HTX defended operations.
Justin Sun-linked crypto exchange HTX has delisted the Trump family-backed USD1 stablecoin, accusing World Liberty Financial of freezing several exchange-linked addresses without sufficient justification. The decision marks a major escalation in the ongoing dispute between the two firms and has resulted in the suspension of multiple USD1-related services on the platform.
HTX announced that World Liberty Financial recently froze specific on-chain addresses associated with the exchange during sanctions compliance reviews. According to HTX, the restrictions limited the circulation of certain World Liberty Financial assets connected to those addresses.
As a result, the exchange removed USD1 from its platform and halted support for deposits and conversions involving the stablecoin. HTX also confirmed that users’ USD1 balances will be converted into Tether (USDT) at a 1:1 ratio, although the exchange has not yet disclosed the exact timeline.
Additionally, HTX suspended trading for several pairs, including USD1/USDT, WLFI/USDT, BTC/USD1, and ETH/USD1. The company said the move was necessary to protect users whose assets could be affected by the restrictions.
According to HTX, World Liberty Financial imposed the freeze without adequate communication, transparent disclosure, or proper legal grounds. The exchange further argued that the action harmed user interests and called on the company to restore access to the affected addresses.
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Official Statement from HTX Regarding the Handling of WLFI and USD1 Assets
The World Liberty Financial (WLFI) project team recently stated that it has unilaterally imposed a freeze on specific HTX on-chain addresses based on sanctions compliance reviews.
As a result, the…
— HTX (@HTX_Global) June 6, 2026
HTX and World Liberty dispute moves beyond compliance concerns
The delisting comes as tensions continue to rise between Justin Sun and World Liberty Financial. In April, Sun filed a lawsuit against the company, alleging that it froze tokens linked to him and threatened to burn those holdings without proper justification.
However, the conflict widened a month later when World Liberty Financial filed its own lawsuit against Sun. The company accused the crypto entrepreneur of making false statements about the platform and violating token sale terms through prohibited transactions, short-selling, and straw purchases.
Meanwhile, HTX has indicated that it may pursue legal remedies in response to the address freeze. The exchange stated that it would take necessary measures to protect users and defend their interests.
The dispute also emerged shortly after UK authorities sanctioned Huobi Global S.A. on May 26. Authorities said there were reasonable grounds to suspect the entity had provided financial services benefiting Russia’s government.
HTX rejected any connection between the sanctions and its current operations. The exchange stated that Huobi Global S.A. is separate from the modern HTX platform and insisted that the designation should not affect its business.
World Liberty Financial has not publicly confirmed whether it froze the specific HTX addresses cited by the exchange. However, the company stated on X that it maintains risk-based sanctions compliance controls following recent sanctions updates.
What happens next
The USD1 delisting has transformed a compliance dispute into a broader conflict involving legal claims, sanctions concerns, and frozen digital assets. With lawsuits already underway and both sides defending their positions, the disagreement now directly impacts trading activity surrounding the Trump-backed stablecoin and could shape the next phase of the dispute between HTX and World Liberty Financial.
HTX’s removal of USD1 places the asset freeze at the center of an increasingly public battle between Justin Sun and World Liberty Financial. As both parties continue their legal and regulatory disputes, the stablecoin’s future role on major exchanges remains under closer scrutiny.
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