Key Highlights
- HTX suspended multiple WLFI-related trading pairs after World Liberty Financial froze certain exchange-linked addresses.
- The exchange converted all user-held USD1 stablecoins into USDT as a precautionary measure.
- HTX criticized WLFI for freezing assets without adequate communication, legal basis, or due process.
HTX, a Seychelles-based cryptocurrency exchange, has suspended multiple WLFI-related trading pairs and converted all user USD1 holdings to USDT after the World Liberty Financial (WLFI) team froze specific HTX on-chain addresses, citing UK sanctions compliance.
According to HTX’s official announcement issued on Saturday, the move, effective from 13:00 UTC on June 5, 2026, affects WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 trading pairs.
The exchange said it acted swiftly to “safeguard users’ assets, preserve market fairness, and mitigate potential systemic risks.” According to HTX, the WLFI team imposed the freezes following sanctions compliance reviews linked to the United Kingdom.
HTX stated that the affected addresses hold assets belonging to individual users who legally purchased the tokens and not assets of any sanctioned entity or the exchange itself. Despite this, on-chain circulation of the associated WLFI assets has been restricted.
HTX criticizes WLFI’s actions
HTX strongly criticized the WLFI team’s approach. “The unilateral freezing of these addresses, conducted without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure, or adherence to due process, directly infringes upon the legitimate rights and interests of HTX users,” the exchange stated.
Liu Ye, HTX’s spokesperson and marketing head, addressed the development. “These are not assets belonging to any sanctioned entity. They are not HTX’s assets. They are assets legally purchased and owned by individual users,” she wrote.
Liu further asked, “Do users truly own their digital assets, or can a project unilaterally revoke access at any time? User ownership is one of the core principles of blockchain. No project should be able to arbitrarily restrict lawful user assets without transparent procedures and clear justification.”
Responsive measures of HTX
In response to the freeze, HTX formally requested that WLFI lift the freeze and suspend related trading services until the matter is resolved. The exchange said users’ WLFI tokens remain visible in their accounts and are not lost; withdrawals will resume once the on-chain restrictions are lifted.
As a protective measure, all USD1 stablecoin holdings, issued by the WLFI team, are being uniformly converted to USDT, with details to be announced separately. HTX has additionally halted USD1 deposits and withdrawals.
The Crypto Times has reached out to the WLFI team for comment but had not received a response at the time of publication.
Broader compliance questions emerge
HTX clarified that the listed entity Huobi Global S.A. is distinct from the online HTX platform, stating that any sanctions designation against the former does not affect HTX operations or user funds. The same has been clarified by the exchange many times in the past.
The dispute comes amid growing scrutiny of compliance practices in the crypto sector, where projects and platforms navigate complex international sanctions regimes.
The situation remains fluid, with potential implications for how future token projects handle compliance, user rights, and partnerships with major trading platforms. HTX users are advised to monitor official channels for conversion details and further developments.
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