HTX, the cryptocurrency exchange operated by Justin Sun, has completed the full delisting of USD1, the stablecoin issued by World Liberty Financial (WLFI), the crypto project backed by US President Donald Trump. The delisting took effect on June 7, 2026, at 11:00 UTC+8. User holdings of USD1 were automatically converted to USDT at a 1:1 rate.
The move follows a cascade of trading suspensions and public conflict between Sun and the WLFI project. On June 5, HTX suspended all trading pairs involving WLFI tokens, including WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1. The exchange announced the USD1 delisting the following day, citing the need to reduce potential risks, protect user assets, and maintain fair trading conditions.
The delisting stems from WLFI’s freeze of HTX on-chain wallet addresses. WLFI project team cited sanctions compliance reviews as justification for the freeze. Sun has disputed this characterization, filing a lawsuit against WLFI that alleges his tokens were frozen without cause. Sun’s legal action also claims that WLFI operates a blacklist mechanism capable of restricting or destroying user funds.
WLFI has responded with a countersuit accusing Sun of running a coordinated defamation campaign and using social media influencers and bots to spread damaging claims about the project. Neither WLFI nor its legal representatives have issued a detailed public explanation of the freeze.
According to reports, Sun was offered a behind-the-scenes settlement by a World Liberty Financial investor, though no resolution has been announced and the status of that offer remains unclear.
The conflict has unfolded against a backdrop of heightened regulatory scrutiny in crypto markets. The broader cryptocurrency sector held a market capitalization of $2.12 trillion at the time of the delisting.
Competing Claims
Sun’s lawsuit centers on two core allegations: that WLFI froze his tokens without legitimate cause, and that the project’s blacklist mechanism poses a systemic risk to user funds. WLFI’s countersuit frames Sun’s public statements as a coordinated campaign to damage the project’s reputation, implicating social media amplification in the dispute.
The freeze itself remains the central point of contention. WLFI has not publicly detailed which specific sanctions compliance review prompted the action or how HTX’s addresses triggered that review. Sun has characterized the freeze as arbitrary and has used it as grounds to challenge WLFI’s operational legitimacy.
Market Impact
The delisting removes USD1 from one of the largest cryptocurrency exchanges, reducing the stablecoin’s liquidity and accessibility for traders. HTX users who held USD1 at the time of delisting retained equivalent value through the 1:1 conversion to USDT, avoiding direct losses. However, the move signals a breakdown in the relationship between a major exchange operator and a high-profile crypto project with direct ties to the US presidency.
The incident underscores tensions between decentralized finance projects and centralized exchange operators over asset custody, compliance, and operational control. It also highlights the vulnerability of stablecoins to delisting decisions by major trading venues, particularly when underlying projects face legal disputes or regulatory questions.
Next Steps
HTX has not announced plans to relist USD1 or resume trading of WLFI tokens. The ongoing litigation between Sun and WLFI may determine whether the exchange reconsiders its position. The settlement offer reportedly extended to Sun by a WLFI investor could potentially resolve the underlying dispute, but no public confirmation of active negotiations has emerged.
