- In order to protect user assets, it delisted USD1 and said that the on-chain circulation of certain WLFI assets linked to these addresses has been limited.
- On Sunday, the delisting was implemented. Users will have their USD1 holdings changed to the stablecoin Tether (USDt) at a 1:1 ratio.
The Trump family’s USD1 stablecoin was delisted by HTX, an exchange associated with crypto entrepreneur Justin Sun, after claims that the addresses of the exchange were incorrectly frozen by World Liberty Financial. According to HTX’s statement on Saturday, the World Liberty Financial (WLFI) project team has unilaterally frozen some HTX on-chain addresses in response to evaluations about sanctions compliance.
In order to protect user assets, it delisted USD1 and said that the on-chain circulation of certain WLFI assets linked to these addresses has been limited. In a move that was announced on May 26, the UK levied sanctions on HTX—previously known as Huobi Global—on the basis that there were “reasonable grounds to suspect” that the exchange had provided financial services to the Russian government.
Action Over User Asset Restrictions
Nevertheless, HTX clarified that the designated business, Huobi Global S.A., is “distinct from the online HTX exchange” and that the platform should be unaffected by the sanctions. On Sunday, the delisting was implemented. Users will have their USD1 holdings changed to the stablecoin Tether (USDt) at a 1:1 ratio. The specific completion dates and details will be disclosed later, however deposit and conversion services for USD1 are no longer available.
The WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1 trading pairings have also been halted. This exchange has demanded that WLFI unfreeze its addresses because it claims that this was done “without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure or adherence to due process” and that this action violates the rights of its users and their assets.
HTX has said that it would pursue legal remedies among other actions to protect users’ lawful rights and interests. On Wednesday, World Liberty said on X that, in response to new sanctions regulations, World Liberty Financial continues to use risk-based sanctions compliance procedures.
In April, Sun, who is said to be the owner of HTX and a member of the worldwide advisory board for the exchange, filed a lawsuit against World Liberty, alleging that the platform had unlawfully threatened to burn his tokens and frozen them. Sun was served with a defamation suit by World Liberty in May.
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