WLFI Freezes HTX User Assets; Exchange Delists USD1 Stablecoin
World Liberty Financial froze on-chain addresses linked to HTX on 5 June 2026, locking retail user funds with no prior notice. HTX responded by suspending four WLFI and USD1 trading pairs and converting all user USD1 balances to USDT at 1:1.
WLFI froze HTX-linked user addresses on 5 June with no prior notice
World Liberty Financial (WLFI) restricted the on-chain circulation of WLFI tokens held in HTX-linked addresses on approximately 5 June 2026. The project team cited an ongoing UK sanctions compliance review as the reason. HTX stated it received no advance notice and no explanation of the legal basis, scope, or resolution timeline for the action.
"These are assets legally purchased and owned by individual users… To date, we have received no clear explanation regarding the legal basis, scope, standards, or resolution process behind this action." — HTX spokesperson, 6 June 2026
HTX suspends four trading pairs and converts all USD1 holdings to USDT
HTX suspended four trading pairs in response: WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1. The exchange halted USD1 deposits and withdrawals and automatically converted all user USD1 balances to USDT at a strict 1:1 ratio. On 7 June 2026, HTX announced the full delisting of USD1 from its platform.
WLFI tokens remain held on-chain. HTX formally requested WLFI lift the freeze and stated that withdrawals will resume only once the restriction is removed.
"Today, WLFI holders are affected. Tomorrow, it could be anyone. User assets are not negotiable." — HTX, 6 June 2026
UK sanctions on Huobi Global S.A. triggered the WLFI compliance action
The freeze traces to the UK's designation of Huobi Global S.A. — the Panama-registered entity controlling HTX — on 26 May 2026. The UK cited suspected facilitation of over $1.5 billion in flows linked to Russia's war economy via the A7 network. The designation was made under the Russia (Sanctions) (EU Exit) Regulations 2019.
The UK's Office of Financial Sanctions Implementation (OFSI) subsequently confirmed, in FAQ 186, that HTX itself is directly subject to UK financial sanctions. OFSI's assessment noted that Huobi Global S.A. holds more than 50 per cent of HTX's shares. That ownership makes HTX a controlled entity under the sanctions framework.
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