- HTX is removing USD1 and converting eligible balances to USDT at a 1:1 ratio following an address-freeze dispute with WLFI.
- The conflict began after WLFI froze HTX-linked wallets during a sanctions compliance review, prompting criticism from the exchange.
- The case renews scrutiny of WLFI’s token-freeze capabilities, previously highlighted in a dispute involving Justin Sun.
HTX announced it will remove World Liberty Financial’s USD1 stablecoin from its platform and convert eligible balances into USDT at a 1:1 ratio. According to the exchange, the delisting takes effect at 03:00 UTC on June 7, 2026, after the WLFI project team froze certain HTX-linked onchain addresses during a sanctions compliance review.
HTX Moves Ahead With USD1 Delisting
According to HTX, the exchange decided to delist USD1 to reduce potential risks and protect user assets. Eligible holdings will automatically convert into USDT, while the credited assets will arrive in users’ Spot Accounts after the process finishes.
The exchange also confirmed that USD1 deposit services will no longer operate after the suspension takes effect. In addition, conversion services tied to fresh USD1 deposits will remain unavailable after the cutoff.
Earlier this week, HTX also halted trading for the WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 pairs. The exchange linked those actions to developments surrounding the WLFI project.
Address Freeze Sparks Public Dispute
According to HTX, the WLFI team froze several exchange-linked addresses without sufficient prior communication or transparent disclosure. The exchange argued that the action affected assets owned by individual users rather than sanctioned entities.
HTX spokesperson Molly Fu stated on X that the affected funds belonged to users who legally acquired them. She also called on WLFI to release the frozen assets.
The dispute emerged after the United Kingdom placed Huobi Global S.A. under sanctions on May 26. UK authorities alleged the company facilitated more than $1.5 billion connected to Russian sanctions evasion activities.
Previous WLFI Freeze Case Returns to Focus
The latest development follows another high-profile use of WLFI’s freeze function. In September 2025, the project blacklisted a wallet linked to TRON founder Justin Sun after the movement of roughly $9 million worth of WLFI tokens.
Sun later filed a lawsuit, alleging the WLFI contract contained a hidden mechanism that allowed token freezes without notice or consent. Meanwhile, WLFI has not publicly addressed the HTX-related freeze, although it recently reiterated that transactions involving sanctioned entities may be blocked under its compliance policies.
