HTX will remove USD1 (usd1) from its platform after World Liberty Financial froze wallet addresses linked to the exchange, escalating a dispute that has already spilled into court.
Key Points:
- HTX will delist USD1 on Jun. 7 and convert eligible holdings into USDT at a 1:1 ratio.
- The move follows WLFI's decision to freeze wallet addresses associated with HTX.
- The dispute adds another chapter to the ongoing legal battle between Justin Sun and WLFI.
HTX USD1 Delisting
HTX announced on Jun. 6 that it will remove USD1 from trading on Jun. 7 at 11:00 UTC+8.
Eligible users holding the stablecoin will receive Tether (usdt) at a 1:1 conversion rate after the delisting process is completed.
The exchange said the decision was intended to reduce potential risks, protect user assets and maintain a fair trading environment. HTX added that the converted USDT will be credited directly to users’ spot accounts, while the exact distribution schedule will be announced separately.
The announcement follows an earlier statement issued on Jun. 5. At that time, HTX said World Liberty Financial had unilaterally frozen on-chain addresses associated with the exchange, citing sanctions-related compliance reviews. According to HTX, the action restricted the circulation of certain WLFI-linked assets and raised concerns about asset security.
Before deciding to remove USD1 entirely, the exchange suspended several trading pairs, including WLFI/USDT, USD1/USDT, Bitcoin (btc)/USD1 and Ethereum (eth)/USD1.
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Justin Sun Lawsuit
The latest move comes against the backdrop of an ongoing legal dispute between Justin Sun and World Liberty Financial.
Sun alleges that WLFI froze tokens linked to him without justification and warned that the project could potentially destroy those assets, making recovery impossible. He has also criticized what he describes as a blacklist mechanism that allows the project to freeze or restrict user funds.
WLFI has denied those claims and filed a countersuit. The company accuses Sun of orchestrating a campaign of defamation and distortion while amplifying harmful allegations through social media, influencers and automated accounts.
The conflict has expanded beyond the courtroom in recent weeks. What began as a dispute over frozen assets now includes exchange trading suspensions, a stablecoin delisting and public accusations from both sides. The removal of USD1 marks the latest escalation in a dispute that is increasingly affecting market access and liquidity for users.
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