HTX Delists USD1 Stablecoin
The cryptocurrency exchange HTX, associated with entrepreneur Justin Sun, has recently taken the significant step of delisting the USD1 stablecoin linked to the Trump family. This decision follows claims that World Liberty Financial froze HTX’s addresses, prompting HTX to respond by suspending trading activities related to USD1.
Reasons Behind the Delisting
HTX stated that World Liberty Financial’s project team has unilaterally decided to freeze specific on-chain addresses belonging to the exchange, citing compliance with sanctions reviews as the reason behind this action. In a statement released on Saturday, HTX highlighted that this freeze has led to restrictions on the circulation of certain assets tied to these addresses.
To protect its users’ funds, HTX has officially removed USD1 from its platform, effective Sunday, with immediate cessation of deposits and conversions for the token. Users holding USD1 will see their assets converted to Tether (USDt) at a 1:1 ratio, with more information about the timing of this conversion to be provided in the future.
Suspension of Trading Pairs
Moreover, trading pairs including WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 have been suspended. HTX criticized World Liberty for not adequately communicating prior to the freeze and for lacking the necessary legal grounds for such a move, asserting that users’ rights and assets have been compromised.
In response to these developments, HTX is considering legal options to defend the interests of its clients and is urging World Liberty to lift the freeze.
Background of the Conflict
The conflict escalates against the backdrop of recent sanctions imposed by the UK on HTX, previously known as Huobi Global, due to perceived links to financial support for Russia’s government. In its defense, HTX has clarified that the sanctions refer to a different entity, Huobi Global S.A., which should not affect its current operations.
World Liberty Financial counts former US President Donald Trump and his children among its advisers, yet it has not publicly commented on the allegations regarding the freeze. The company did indicate on social media that it continues to implement risk-based compliance measures in light of recent sanctions updates.
Previous Legal Actions
The ongoing feud is also marked by previous legal actions between Sun and World Liberty, with Sun alleging in April that the firm froze his tokens without just cause and threatened to burn them. In retaliation, World Liberty filed a defamation suit against Sun, accusing him of making untrue claims about the platform and breaching the terms of the WLFI token sale through various prohibited actions. This conflict continues to unfold as both parties navigate the complexities of compliance and legal accountability within the crypto landscape.
