USD1, the stablecoin issued by World Liberty Financial and associated with the Trump family, was removed from HTX exchange on June 8, 2026. All user balances are being converted to Tether (USDT) at a 1:1 ratio. The delisting took effect on Sunday with minimal advance notice to users.
HTX's stated reason: WLFI froze the exchange's on-chain addresses without sufficient prior communication or adequate contractual and legal grounds. WLFI responded with a vague post about maintaining risk-based sanctions compliance controls — it never publicly confirmed the freeze occurred.
The sanctions angle traces back to May 26, when the UK added Huobi Global S.A. — HTX's former corporate entity — to its SDN list over alleged financial support for the Russian government. HTX maintains the designated entity is legally separate from the operating exchange. WLFI appears to have viewed it differently, citing UK sanctions compliance as the basis for its action against the exchange's addresses.
The legal battle predates the delisting. Justin Sun sued World Liberty Financial in April, claiming the project froze his tokens and threatened to burn them without cause or justification. WLFI countersued for defamation in May, alleging Sun made false statements publicly and violated token sale terms.
Strip away the technical details and what remains is a direct confrontation between a crypto billionaire and a project backed by the sitting U.S. president's family. For anyone holding USD1, the episode is a reminder that even politically connected stablecoins carry counterparty risk — and that exchanges operating near sanctioned entities may find their assets frozen with little warning.
