Crypto exchange HTX has removed the USD1 stablecoin from its platform, citing what it describes as an unjustified freeze of exchange-linked blockchain addresses by World Liberty Financial, the DeFi project tied to the Trump family.
Exchange pulls the plug on USD1 trading pairs
HTX has officially removed USD1 from its trading platform following a serious disagreement with World Liberty Financial (WLFI), the decentralized finance venture connected to US President Donald Trump and his family. The exchange cited the freezing of several HTX-associated blockchain wallets as the primary reason behind its decision to delist the stablecoin.
HTX stated that WLFI imposed on-chain restrictions on wallet addresses linked to the exchange as part of what the project described as a sanctions compliance review.
However, HTX rejected this justification, arguing the action was taken without proper legal grounding, advance notice, or an opportunity to respond. The exchange contends this unilateral move disrupted asset circulation and harmed users whose balances were tied to the affected wallets.
Trading suspended and user funds converted to USDT
In response to the dispute, HTX suspended all deposit and conversion services for USD1 and pulled multiple trading pairs from its platform, including USD1/USDT, BTC/USD1, ETH/USD1, and WLFI/USDT.
According to the announcement made by HTX, users who still hold USD1 balances on the exchange will have their funds automatically converted into Tether (USDT) at a one-to-one rate, ensuring no loss in value during the transition.
UK sanctions
The fallout arrives at a particularly sensitive time for HTX. UK regulators recently sanctioned Huobi Global S.A., an entity associated with the HTX brand, over allegations of facilitating financial services that benefited the Russian government.
HTX has pushed back against these claims, insisting that the sanctioned entity is legally separate from its online exchange operations and that its users should not be affected.
The exchange has suggested that WLFI’s decision to freeze the addresses may have been influenced by these ongoing sanctions-related developments, adding a geopolitical dimension to what is already a complex dispute.
HTX has threatened legal action against WLFI
HTX has publicly called on World Liberty Financial to immediately reverse the wallet restrictions, characterizing the freeze as a violation of the rights of both the platform and its customers.
The exchange warned that if WLFI fails to address the situation, HTX may pursue legal remedies to protect its users’ interests.
This latest chapter deepens an already bitter conflict between HTX adviser and crypto entrepreneur Justin Sun and the World Liberty Financial team.
Sun had previously initiated legal proceedings against WLFI, alleging that his tokens were frozen and threatened with destruction without valid justification. WLFI responded by filing a defamation lawsuit against Sun, accusing him of spreading false statements and breaching the terms of the WLFI token sale through unauthorized transactions.
The situation now pits two major players in the crypto space against each other, with users and markets watching closely to see how the legal and financial fallout unfolds.
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