The Trump family's USD1 stablecoin was delisted by HTX, an exchange associated with crypto entrepreneur Justin Sun, after claims that the exchange's addresses were incorrectly frozen by World Liberty Financial (WLFI).
According to HTX's statement on Saturday, the WLFI project team unilaterally froze some HTX on-chain addresses in response to sanctions compliance evaluations. To protect user assets, HTX delisted USD1 and limited the on-chain circulation of certain WLFI assets linked to those addresses.
On May 26, the UK levied sanctions on HTX-formerly Huobi Global-citing "reasonable grounds to suspect" the exchange provided financial services to the Russian government. HTX clarified that the designated business, Huobi Global S.A., is distinct from the online HTX exchange, and the platform should be unaffected.
On Sunday, the delisting was implemented. Users will have their USD1 holdings converted to Tether (USDT) at a 1:1 ratio. Deposit and conversion services for USD1 are no longer available. Trading pairs WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 have been halted.
HTX demanded WLFI unfreeze its addresses, claiming the freeze was done "without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure or adherence to due process." HTX said it would pursue legal remedies.
In April, Sun filed a lawsuit against World Liberty, alleging the platform unlawfully threatened to burn his tokens and froze them. World Liberty responded with a defamation suit in May.