HTX said it will remove World Liberty Financial���s USD1 stablecoin from its platform and automatically convert eligible balances into USDT at a 1:1 ratio. The exchange set the delisting for 03:00 UTC on June 7, 2026, adding that converted assets will be credited to users’ Spot Accounts after processing is completed.
According to HTX, the decision was made to reduce potential risks and protect user assets. USD1 deposit services will stop once the suspension takes effect. Conversion services tied to newly deposited USD1 will also remain unavailable after the cutoff.
Trading suspensions came before the full delisting
Earlier in the week, HTX had already halted trading in WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1. The exchange linked those steps to developments surrounding the WLFI project.
HTX said the WLFI team froze several onchain addresses connected to the exchange during a sanctions compliance review, but did so without sufficient prior communication or clear public disclosure. The exchange argued that the affected assets belonged to individual users rather than sanctioned entities.
HTX spokesperson Molly Fu wrote on X that the frozen funds belonged to users who had obtained them legally, and called on WLFI to release the assets.
Dispute followed sanctions action in the UK
The conflict took shape after the United Kingdom placed Huobi Global S.A. under sanctions on May 26. UK authorities alleged that the company facilitated more than $1.5 billion tied to Russian sanctions-evasion activity.
WLFI has not publicly commented on the HTX-related freeze. The project has, however, recently repeated that transactions involving sanctioned entities may be blocked under its compliance policies.
WLFI freeze powers face renewed scrutiny
The episode has drawn attention back to WLFI’s token-freeze capabilities. In September 2025, the project blacklisted a wallet linked to TRON founder Justin Sun after the movement of WLFI tokens worth about $9 million.
Sun later filed a lawsuit, alleging that the WLFI contract included a hidden mechanism that allowed tokens to be frozen without notice or consent. With HTX now removing USD1, the debate over freeze authority, compliance enforcement, and the handling of user-linked assets has returned to the center of discussion.