We explain why the crypto exchange clashed with the stablecoin linked to President Donald Trump’s family.
Crypto exchange HTX▼$0.00000176, linked to Justin Sun, has announced the delisting of the USD1▼$0.9988 stablecoin from the World Liberty Financial project, which is associated with President Donald Trump’s family.
Hot topic: Bitcoin Bear Market Losses Put BTC’s Bottom Case to Test
The decision came in response to WLFI▼$0.0557 freezing several on-chain addresses linked to HTX. The exchange called the project’s actions “unilateral, without prior notice, legal basis, or transparency.”
Contents
What Will Happen to User Funds?
HTX has suspended trading for the WLFI/USDT▼$0.9993, USD1/USDT, BTC▲$63,470.00/USD1, and ETH▲$1,682.48/USD1 pairs. All user balances of USD1 will be automatically converted to USDT at a 1:1 ratio. The delisting takes effect on June 7.
The announcement has had no impact on the stablecoin’s price. Over the past week, the asset has barely moved and trades at approximately $0.99 at the time of publication.
Trump vs. Sun: How Did the Conflict Begin?
WLFI explained the freeze as part of a UK sanctions compliance check. In May 2026, UK authorities imposed sanctions on Huobi Global S.A., an entity linked to HTX, accusing it of potentially facilitating sanctions evasion against Russia.
HTX insists that the sanctions apply to a different legal entity and should not affect ordinary user funds.
The Long-Running War Between Justin Sun and WLFI
This is not the first episode of their conflict. In April, Justin Sun sued WLFI after his tokens were frozen. In May, WLFI countersued for defamation.
In its statement, HTX emphasized:
“This raises a fundamental question: do users truly own their digital assets, or can a project unilaterally revoke access to them at any time?”
The exchange is demanding the immediate unfreezing of the assets and is preparing legal action to protect client interests.
Learn more: Mastercard Adds Crypto License as Stablecoin Oversight Expands — Why It’s So Important for Global Payments
