HTX delists USD1 stablecoin, converts holdings to USDT

The cryptocurrency exchange HTX will delist the USD1 stablecoin issued by World Liberty Financial (WLFI) on June 7 and convert all user holdings to the rival stablecoin USDT. The move is a direct response to WLFI freezing specific on-chain addresses linked to HTX, an action the exchange says was taken without proper justification or due process.

HTX announced that the delisting will take effect at 3:00 UTC on June 7. Prior to this, the exchange had already suspended trading for four pairs—WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1—as of 1:00 UTC on June 5. The exchange stated the suspensions and subsequent delisting were necessary to protect users, ensure asset safety, and maintain a fair trading environment.

The dispute centers on WLFI’s decision to freeze certain on-chain addresses. WLFI cited sanctions compliance reviews as the reason, pointing to the United Kingdom’s May 26 sanctions designation of Huobi Global S.A. UK officials alleged that entity facilitated over $1.5 billion in flows tied to Russian sanctions evasion through networks linked to the Garantex exchange. HTX maintains that Huobi Global S.A. is a separate legal entity from the HTX trading platform and that...