HTX delists USD1, converts balances to USDT after WLFI freeze

HTX delisted USD1 on June 7. The exchange converted all USD1 to USDT at 1:1.

WLFI froze HTX-linked on-chain addresses. HTX says WLFI cited UK sanctions. The exchange calls the freeze illegitimate and threatens legal action. Source: HTX support notice, HTX announcement.

Timeline
- June 5 at 13:00 UTC HTX suspended WLFIUSDT, USD1/USDT, BTCUSD1, and ETHUSD1. Source: HTX support notice.
- June 6 HTX announced delisting and said WLFI imposed a unilateral freeze on HTX addresses. Source: HTX statement, HTX announcement.
- June 7 HTX completed the 1:1 conversion from USD1 to USDT. Source: HTX support notice.

Mechanics
- WLFI’s contract lets a guardian blacklist addresses and restrict transfers without court order. HTX says this blocked withdrawals, trading, and redemptions. Source: HTX statement.

Sanctions angle
- WLFI anchored the freeze to the UK’s May 26 designation of Huobi Global S.A., per HTX. HTX says Huobi Global S.A. is distinct from the HTX exchange. Sources: HTX statement, Wu Blockchain post.

What remains unclear
- WLFI has not publicly confirmed freezing HTX’s addresses or named the exact sanctions framework. HTX attributes the action to WLFI’s sanctions review. Sources: HTX statement, HTX announcement.

Legal posture
- HTX alleges no prior notice and no due process. The exchange says it will pursue remedies to protect user assets. Source: HTX statement.

Context
- The WLFI–Sun dispute dates to September 2025 when a Sun-linked wallet holding 545 million WLFI was blacklisted. Sun later sued in California. Source: Wu Blockchain post.