Justin Sun's HTX Delists Trump-Backed USD1 After WLFI Freezes Assets

Breaking: Justin Sun's HTX Delists Trump-Backed USD1 As WLFI Freezes User Assets

28 minutes ago

Updated 27 minutes ago

By Kritika Mehta

Kritika Mehta

Journalist

Kritika boasts over 4 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

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Highlights

HTX has announced delisting of WLFI's USD1 stablecoin. The action follows World Liberty Financial freezing user assets on Huobi wallet addresses. The dispute follows on the heels of a legal battle between Justin Sun and Trump's WLFI.

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Trump-linked World Liberty Financial (WLFI) is under fire again after Justin Sun's HTX exchange took counter measures. HTX fired back by suspending WLFI trading pairs and delisting the project's USD1 stablecoin. The move came in response to WLFI freezing user assets in Huobi-related wallet addresses.

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Justin Sun's HTX Moves To Delist USD1 Stablecoin

In a new announcement on June 6, HTX announced that it will officially delist USD1 on June 7 at 11:00 UTC+8. Moreover, the exchange will convert eligible users' holdings in USD1 to USDT at a 1:1 exchange rate. The crypto exchange said the decision aimed "to reduce potential risks, ensure the safety of user assets, and maintain a fair trading environment."

🪧 火币 HTX 关于 $WLFI、 $USD1 资产处理的情况说明

The World Liberty Financial (WLFI) 项目方近期以相关制裁合规审查为由，单方面对火币 HTX 相关链上地址采取冻结措施，导致部分 WLFI 资产链上流转受限。 鉴于 USD1 同样由 WLFI…

— 火币HTX (@HuobiGlobal) June 6, 2026

After the conversion process, "the corresponding USDT will be credited to users' spot accounts," HTX added. The team also noted that the final time for the distribution would be announced separately. The latest move comes after HTX's earlier statement on June 5. It indicated that the "World Liberty Financial (WLFI) project team has recently, citing compliance reviews related to sanctions, unilaterally frozen on-chain addresses associated with Huobi HTX." The exchange said that the limitations applied to "the on-chain circulation of certain WLFI assets."

At the time, HTX had halted a number of trading pairs involving WLFI. These included WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1, due to the issues of asset security and fairness of the market. Now, the exchange has taken it one step further, by completely withdrawing USD1 from its platform.

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The World Liberty Financial Vs. Justin Lawsuit Drama

The dispute comes as the ongoing legal dispute between WLFI and Tron founder Justin Sun. In his suit, Sun claims that his tokens were frozen without any reason. He added that the project had the potential to destroy the assets, which might make it impossible to recover them. WLFI was also accused by Sun of having a "blacklist" mechanism where he froze or even limited user funds. WLFI, in turn, filed a countersuit against the Tron founder for orchestrating a campaign of defamation and distortion. They added that he is reinfor[cing]…