HTX Delists Trump-Linked USD1 After World Liberty Financial Freezes Exchange Addresses Over UK Sanctions
HTX has delisted the Trump-linked USD1 stablecoin and suspended all WLFI-related trading pairs after World Liberty Financial froze exchange-linked addresses, citing compliance with United Kingdom sanctions regulations.
The emergency action, confirmed on June 6, saw all user USD1 holdings on the exchange automatically converted to USDT at a strict 1:1 ratio. The HTX team stated that WLFI tokens remain safe on-chain and that withdrawals are expected to resume once the address freeze is lifted.
The Sanctions Connection
The freeze traces directly to UK sanctions designating Huobi Global S.A. — the Panama-registered entity tied to HTX — on May 26, 2026, under the Russia (Sanctions) (EU Exit) Regulations 2019. HTX, formerly known as Huobi, has been attempting to distance itself from its Chinese origins under new ownership, but the UK sanctions designation has created cascading compliance obligations for any protocol interacting with the exchange’s wallets.
HTX has formally requested World Liberty Financial to restore access to the frozen addresses. The exchange stated in a public notice that it is “actively working with legal counsel to resolve the compliance issue” and that affected users will be compensated for any losses resulting from the forced conversion.
USD1: Trump’s Stablecoin Under Pressure
USD1 is the stablecoin issued by World Liberty Financial, the crypto enterprise co-founded by President Donald Trump’s family and his special envoy Steve Witkoff. The stablecoin launched in early 2026 with significant fanfare, positioning itself as a dollar-pegged asset that would bridge traditional finance with DeFi.
The delisting by HTX is the most significant operational disruption USD1 has faced since its launch. While the stablecoin remains listed on other exchanges, the sanctions-driven freeze highlights the regulatory risks inherent to crypto assets linked to politically exposed persons.
“USD1 was always going to be a compliance headache,” said a former SEC enforcement attorney now in private practice. “Any stablecoin connected to a sitting president attracts a different level of scrutiny from regulators globally. UK sanctions on a related exchange just compounds the problem.”
World Liberty Financial’s Response
World Liberty Financial has not issued a direct public statement about the HTX delisting. However, sources close to the project indicate that WLFI is conducting its own legal analysis of the UK sanctions designation and its implications for the USD1 ecosystem.
The company’s legal team is believed to be exploring whether the freeze obligations extend beyond the specific Huobi Global S.A. entity to encompass all wallets that have interacted with the sanctioned entity. The outcome of that analysis could determine whether USD1 faces additional exchange delistings in jurisdictions aligned with UK sanctions regimes.
Broader Implications for Trump-Linked Crypto
The HTX delisting comes amid growing scrutiny of President Trump’s financial ties to the crypto industry. Multiple news organizations, including the Associated Press and U.S. News & World Report, have published investigations examining how Trump has used the presidency to benefit his family’s crypto ventures.
World Liberty Financial has been a particular focus. The company was co-founded with Steve Witkoff, a Trump special envoy, and is run by the president’s son Zach Trump. Just before Trump took office, an investment fund linked to the United Arab Emirates purchased a large stake in the project, raising questions about foreign influence and conflicts of interest.
“This is exactly the kind of situation critics warned about,” said a government ethics watchdog. “A sitting president’s family runs a crypto company, that company issues a stablecoin, and now that stablecoin is caught up in international sanctions. The optics couldn’t be worse.”
HTX’s Ongoing Restructuring
For HTX, the USD1 delisting is the latest chapter in a long-running effort to restructure its operations following a series of regulatory setbacks. The exchange lost significant market share after China’s 2021 crypto ban and has been trying to rebrand under new ownership.
The UK sanctions designation poses an existential threat to the exchange’s Western operations. UK-regulated financial institutions are now prohibited from conducting business with Huobi Global S.A., and the sanctions create liability risks for any protocol or exchange that facilitates transactions with the designated entity.
HTX has stated that it is “exploring all legal options” to challenge the sanctions designation, including potential judicial review in UK courts.
Market Impact
USD1’s price remained stable at roughly $1.00 throughout the delisting process, as the forced conversion to USDT absorbed any selling pressure. However, the token’s trading volume has dropped significantly on the remaining exchanges where it is still listed, suggesting reduced market confidence.
WLFI’s native governance token saw more pronounced action, dropping roughly 8% on the news before partially recovering. Analysts noted that the WLFI token has been under sustained pressure for weeks amid broader market weakness and the ongoing uncertainty surrounding the project’s regulatory status.
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FAQ
What happened to my USD1 on HTX?
All USD1 holdings on HTX were automatically converted to USDT at a 1:1 ratio. HTX says affected users will be compensated for any losses resulting from the forced conversion.
Why did World Liberty Financial freeze HTX-linked addresses?
The freeze was triggered by UK sanctions designating Huobi Global S.A. — an entity tied to HTX — under the Russia Sanctions Regulations. WLFI froze the addresses to comply with UK law.
Is USD1 still tradable on other exchanges?
Yes, USD1 remains listed on several other exchanges. However, the HTX delisting and sanctions issues may affect liquidity and trading volume going forward.
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