HTX will permanently remove World Liberty Financial's USD1 stablecoin from its platform starting June 7 and convert retail balances to USDT at 1:1. The delisting follows an escalating dispute after WLFI froze HTX-controlled blockchain addresses, which the exchange says contain ordinary customer funds — not illicit capital tied to UK sanctions.
Why USD1 is getting the boot
HTX pulled the plug on trading pairs WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 as of June 5 at 13:00 UTC. The trigger: WLFI blocked addresses that HTX claims hold retail deposits. The exchange argues that freezing those wallets disrupts normal trading and puts user assets at risk. “The locked funds belong to ordinary retail buyers and are not linked to sanctioned actors,” HTX spokesperson Molly Fu said in a statement.
WLFI didn't name HTX directly in its advisory about the freeze — but the effect was the same: users on HTX could no longer move USD1 or related tokens.
The UK sanctions backdrop
On May 26, the UK government sanctioned Huobi Global S.A., alleging the entity processed roughly $1.5 billion in illicit volume tied to Russian actors. WLFI initiated the wallet freezes to comply with those sanctions. HTX insists it is operationally independent from Huobi Global S.A., but the distinction hasn't stopped the fallout.
This isn't WLFI's first rodeo with frozen tokens. In September 2025, the project blocked addresses linked to Justin Sun — Tron founder and HTX advisor — leading to a Florida lawsuit. That dispute was personal and governance-related; this one cuts deeper because it hits exchange liquidity and retail depositors directly.
What users need to know
Starting June 7, HTX will convert any remaining USD1 in retail accounts to USDT automatically. The exchange says the process is mandatory and irreversible. For now, the affected trading pairs are dark, and anyone holding USD1 on HTX should expect the conversion within days.
The standoff leaves a knotty question unresolved: how do crypto platforms balance compliance with international sanctions against the ethos of decentralized, permissionless finance? HTX chose to protect its user base by ejecting the token. WLFI chose to comply with the UK. Retail holders are stuck in the middle — and they've got until Sunday to do anything about it.
