Cryptocurrency exchange HTX announced on June 6 that it will delist the USD1 stablecoin (World Liberty Financial USD) and convert user holdings to USDT (Tether) following World Liberty Financial's (WLFI) decision to freeze specific HTX on-chain addresses. WLFI cited a UK sanctions compliance review as the reason for freezing the addresses, which restricted on-chain circulation of certain assets. The move comes after the UK government sanctioned HTX's operator Huobi Global S.A. on May 26 for allegedly supporting Russia's war economy by providing funds, economic resources, or financial services to individuals and entities linked to Russia's financial services sector.
WLFI Freezes HTX Addresses Citing UK Sanctions Compliance
HTX stated in an announcement that "USD1 is an asset issued by the WLFI project team" and that the exchange decided to delist USD1 "to mitigate potential risks, protect user assets, and maintain a fair trading environment." The exchange explained that "the WLFI project team previously froze specific HTX on-chain addresses based on a UK sanctions compliance review, which restricted on-chain circulation of certain assets."
Global cryptocurrency exchange HTX logo. Source: HTX X
UK Government Sanctions Huobi Global S.A. on May 26
On May 26, the UK government added Huobi Global S.A., HTX's operating entity, to its sanctions list for allegedly supporting Russia's war economy. The government stated that "Huobi Global S.A. is suspected of providing funds, economic resources, or financial services to individuals and institutions linked to Russia's financial services sector." Entities on the sanctions list are prohibited from transacting with UK financial institutions, and violations can result in penalties.
At the time, HTX responded by stating, "We comply with all applicable laws and cooperate with law enforcement agencies worldwide. The government sanctions designation does not affect HTX exchange operations, and all user funds are safe."
HTX Converts User USD1 Holdings to USDT at 1:1 Ratio
Following the delisting, user-held USD1 will be converted to USDT at a 1:1 ratio. Once the conversion is complete, the USDT will be credited to users' Spot accounts. USD1 trading support will end on June 7 at 03:00 UTC.
HTX added, "The specific completion time of the conversion and asset payment results will be announced through a separate notice."
FAQ
Why did HTX delist USD1?
HTX delisted USD1 after World Liberty Financial (WLFI) froze specific HTX on-chain addresses citing a UK sanctions compliance review, which restricted on-chain circulation of certain assets.
What happens to user USD1 holdings after the delisting?
User-held USD1 will be converted to USDT at a 1:1 ratio, and the converted USDT will be credited to users' Spot accounts after the conversion is complete.
When did the UK government sanction HTX's operator?
The UK government sanctioned Huobi Global S.A., HTX's operating entity, on May 26 for allegedly supporting Russia's war economy by providing funds, economic resources, or financial services to individuals and entities linked to Russia's financial services sector.
