HTX delists USD1 after Trump's World Liberty Financial…

HTX, the crypto exchange linked to Justin Sun, has delisted USD1 — the stablecoin issued by Trump's World Liberty Financial — after claiming the project froze some of its on-chain addresses. HTX has warned it may pursue legal action if the freeze is not reversed.

Why it matters

The move puts two politically high-profile crypto entities on a collision course. World Liberty Financial, backed by the Trump family, launched USD1 as a dollar-pegged stablecoin earlier this year. HTX's decision to delist the asset and threaten litigation signals a breakdown in the relationship between the two camps, and raises questions about the governance and control mechanisms embedded in USD1's smart contracts — specifically, who holds the authority to freeze addresses and under what conditions.

Market impact

For USD1, a freeze-and-delist event from a major exchange is a credibility hit at a critical stage of the stablecoin's adoption curve. For HTX, the episode adds to a running list of regulatory and operational controversies surrounding the Sun-linked exchange. Traders holding USD1 on HTX should verify withdrawal options and monitor whether other exchanges follow with similar actions. The legal threat, if escalated, could draw regulatory scrutiny from both US and offshore jurisdictions.