by Coinstrooper Crypto Articles
Quick Take
  • The exchange acted swiftly on June 5, 2026, at 13:00 UTC to protect users amid the unilateral freeze.
  • The WLFI project team restricted on-chain circulation of specific WLFI tokens in HTX-related addresses, citing an ongoing UK sanctions compliance review.
  • HTX stated these are not assets of any sanctioned entity or the exchange itself, they belong to individual users who legally purchased them.
  • To safeguard user assets, preserve market fairness, and reduce systemic risks, HTX immediately suspended these trading pairs:

What Happened

Why This Matters to Investors

Market Context

HTX has suspended trading of WLFI and USD1 assets after the World Liberty Financial team froze user tokens on HTX-linked addresses, escalating tensions over issuer control in crypto.

HTX Suspends WLFI and USD1 Trading After Asset Freeze

To safeguard user assets, preserve market fairness, and reduce systemic risks, HTX immediately suspended these trading pairs:

Its token smart contract includes an admin-controlled blacklist/freeze function, a capability previously exercised in 2025 disputes with large holders, including those linked to Justin Sun.

Why It Matters

WLFI tokens remain safe on-chain, with withdrawals expected to resume once the freeze is lifted. HTX has formally requested WLFI to restore access.

The freeze traces directly to UK sanctions designating Huobi Global S.A. — the Panama-registered entity tied to HTX — on May 26, 2026, under Russia (Sanctions) (EU Exit) Regulations 2019.

WLFI maintains risk-based sanctions compliance controls and has publicly reminded users of potential restrictions on associated addresses.

HTX was an early supporter of World Liberty Financial and the first major exchange to list USD1 on May 6, 2025. USD1 is a USD-pegged stablecoin with collateral held by BitGo Trust.

Details

The exchange acted swiftly on June 5, 2026, at 13:00 UTC to protect users amid the unilateral freeze.

The WLFI project team restricted on-chain circulation of specific WLFI tokens in HTX-related addresses, citing an ongoing UK sanctions compliance review.

HTX stated these are not assets of any sanctioned entity or the exchange itself, they belong to individual users who legally purchased them.

“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 stated.

HTX’s Decisive Response

WLFI/USDT

USD1/USDT

BTC/USD1

ETH/USD1

The exchange suspended USD1 deposits and withdrawals. All user USD1 holdings were automatically converted to USDT at a strict 1:1 ratio.

Root Cause and Broader Context

The UK cited suspected facilitation of over $1.5 billion in flows supporting Russian sanctions evasion.

The post HTX Escalates Dispute With WLFI After Address Freeze appeared first on BeInCrypto.