HTX, the cryptocurrency exchange, has fully delisted USD1, a stablecoin connected to US President Donald Trump’s World Liberty Financial (WLFI) project, amid escalating tensions involving asset freezes and compliance concerns. The exchange announced the removal of USD1 shortly after WLFI froze blockchain wallet addresses linked to HTX, restricting the circulation of related tokens.
The delisting took effect on June 7, with USD1 token holders on HTX having their balances converted to USDT at a 1:1 ratio credited to their spot accounts. HTX cited risk reduction, asset protection, and the maintenance of fair trading conditions as reasons for its decision. Prior to the removal, HTX had suspended multiple trading pairs involving WLFI tokens including USD1 and WLFI against USDT and major cryptocurrencies.
This move stems from a broader conflict between HTX’s founder Justin Sun and WLFI. Sun initiated legal proceedings against WLFI, accusing the project of freezing his tokens without justified cause and employing a blacklist system capable of impairing user funds. In response, WLFI filed a countersuit alleging that Sun orchestrated a coordinated defamation campaign against them using social media influencers and automated accounts.
The asset freeze enforced by WLFI remains a crucial point of contention. WLFI justified the wallet freezes as part of sanctions compliance reviews, but has not publicly elaborated on the legal basis or details of the action. This has left users and market observers uncertain about the legitimacy or strategic motivations behind the freeze.
For holders of USD1 on HTX, the immediate consequence is the compulsory conversion of stablecoins to USDT, with a timeline for the distribution yet to be confirmed by the exchange. Beyond this, uncertainty persists regarding the status of WLFI’s on-chain assets and the ongoing legal disputes involving major stakeholders.