HTX has suspended trading for World Liberty Financial's WLFI and USD1 tokens, converting all user USD1 holdings into USDT at a 1:1 ratio. The delisting took effect June 7 at 03:00 UTC.
The move follows WLFI freezing tokens in addresses tied to HTX after Huobi Global S.A. was flagged under UK sanctions compliance review on May 26.
HTX, which was the first major exchange to list both tokens in May 2025, halted all USD1 deposits and withdrawals before enforcing the conversion.
World Liberty Financial, linked to individuals connected to the Trump family, issues both the WLFI governance token and the USD1 stablecoin. Its contracts contain admin-controlled freeze capabilities, previously used against large holders in September 2025.
For investors, the swap is financially neutral-USD1 converted to USDT at par. But the freeze mechanism exposes a centralization risk: any exchange holding WLFI or USD1 could face the same action if WLFI's compliance team decides to freeze addresses.