Justin Sun has reportedly been offered a behind-the-scenes settlement by a World Liberty Financial investor, though no resolution has been announced. That unresolved tension now has a new flashpoint: Sun’s crypto exchange HTX has moved to fully delist USD1, the stablecoin tied to US President Donald Trump’s World Liberty Financial project.
A Freeze That Started It All
HTX announced on June 6 that USD1 would be removed from its platform on June 7. Users holding USD1 on the exchange will have their balances converted to USDT at a 1:1 rate, with the converted funds credited to their spot accounts.
The exchange said the decision was made to reduce potential risks, protect user assets, and maintain fair trading conditions. HTX stopped short of labeling it retaliation, but the timing left little ambiguity.
? 火币 HTX 关于 $WLFI、 $USD1 资产处理的情况说明
The World Liberty Financial (WLFI) 项目方近期以相关制裁合规审查为由，单方面对火币 HTX 相关链上地址采取冻结措施，导致部分 WLFI 资产链上流转受限。
鉴于 USD1 同样由 WLFI…
— 火币HTX (@HuobiGlobal) June 6, 2026
A day earlier, on June 5, HTX had already suspended several trading pairs involving WLFI tokens — including WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1.
The suspension followed what HTX described as a unilateral move by the WLFI project team to freeze on-chain wallet addresses linked to Huobi HTX, citing sanctions compliance reviews as justification.
Lawsuit Hangs Over The Dispute
The conflict does not exist in isolation. It is playing out against the backdrop of an active legal fight between Sun and WLFI.
Sun filed a lawsuit against the project, alleging his tokens were frozen without cause and that WLFI operates a blacklist mechanism capable of restricting or destroying user funds.
? 关于火币HTX下架USD1(USD1)并将用户资产兑换为USDT的公告
鉴于 USD1 为 WLFI 项目方发行的资产，为降低潜在风险、保障用户资产安全及维护公平交易环境，火币HTX将于2026年6月7日11:00（UTC+8）时下架 USD1，并将用户账户内符合兑换范围的 USD1 按 1:1 的比例兑换为 USDT。
兑换完成后，对应 USDT… https://t.co/O34q0Joc7k
— 火币HTX (@HuobiGlobal) June 6, 2026
WLFI hit back 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.
The two sides appear no closer to a resolution. A settlement offer from a major WLFI investor was extended to Sun, but he has made no public statement indicating progress on that front.
What Comes Next For USD1 Holders
For users on the exchange, the immediate impact is straightforward: USD1 holdings will be swapped out for USDT, and the exchange has said the distribution timeline will be confirmed separately.
The broader question — whether WLFI’s invocation of sanctions compliance to freeze a counterparty’s on-chain addresses was legally grounded or tactically motivated — remains open.
Neither WLFI nor its legal representatives have issued a detailed public explanation of the freeze.
USD1 is a stablecoin issued by World Liberty Financial, a crypto project backed by Trump.
Featured image from Baltana, chart from TradingView
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