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HTX has delisted USD1, the stablecoin issued by World Liberty Financial, after saying the WLFI team froze specific HTX on-chain addresses during sanctions compliance reviews.
The exchange said eligible user USD1 balances will be converted into USDT at a 1:1 ratio. The delisting follows a dispute between HTX and WLFI over frozen on-chain addresses and user access to assets.
USD1 Balances Will Convert to USDT at 1:1
HTX said it would delist USD1 at 03:00 UTC on June 7. After conversion, matching USDT will be credited to users’ spot accounts. HTX said final distribution details will be announced separately.
The exchange also suspended USD1 deposits and conversion services. HTX said the decision was tied to USD1 being issued by the WLFI team involved in the address freeze.
WLFI and USD1 Pairs Halted on June 5
Before the delisting, HTX suspended trading for WLFI/USDT, USD1/USDT, BTC/USD1 and ETH/USD1. Those trading pairs were halted at 13:00 UTC on June 5.
HTX said the freeze restricted the on-chain circulation of certain WLFI assets tied to HTX addresses. The exchange also removed WLFI and USD1 Earn products, including flexible, fixed and staking products.
Earn Products to Redeem by June 6
HTX said principal and accrued interest from affected Earn products would be redeemed automatically. The exchange said the funds would be credited to users’ spot accounts by 16:00 UTC on June 6.
HTX said the delisting and product removals were meant to reduce risk, protect user assets and maintain a fair trading environment after the address freeze.
HTX Says WLFI Freeze Lacked Due Process
HTX said WLFI acted without enough prior communication, legal basis, public explanation or due process. The exchange said the freeze directly affected users’ asset rights. It asked WLFI to explain the legal basis, scope and parties responsible for the action.
HTX also said Huobi Global S.A., the entity named in recent UK sanctions, is distinct from the online HTX exchange. The exchange said its global operations remain unaffected and user funds are safe.
UK Sanctions Remain Pressure Point in WLFI Dispute
The freeze fight follows UK sanctions against Huobi Global S.A. over alleged support for Russia-linked financial networks.
The UK sanctions notice said officials had reasonable grounds to suspect the entity provided financial services, funds, economic resources, goods or technology to A7 Limited Liability Company and Garantex Europe OU.
The next step is whether WLFI unfreezes the affected addresses or gives a fuller explanation of its sanctions controls. Until then, HTX users will hold USDT in place of USD1, while the affected addresses remain frozen.
