HTX suspends WLFI and USD1 trading after frozen addresses trigger user ownership concerns, compliance questions, and market uncertainty.
HTX suspended WLFI and USD1 trading on June 5 after an unexpected asset freeze. According to the exchange, the World Liberty Financial team blocked several blockchain addresses related to HTX. Consequently, some users were unable to access some WLFI tokens. This move raised questions about digital asset ownership and project control in the crypto sector.
HTX Takes Emergency Action After WLFI Freezes Addresses
The restrictions were imposed by the WLFI team during a United Kingdom sanctions compliance review, according to HTX. But the exchange noted that the impacted assets are individual users’ assets, the exchange said. Moreover, HTX emphasized that the tokens are not issued by the sanctioned entities or the exchange.
Official Statement from HTX Regarding the Handling of WLFI and USD1 Assets
The World Liberty Financial (WLFI) project team recently stated that it has unilaterally imposed a freeze on specific HTX on-chain addresses based on sanctions compliance reviews.
As a result, the…
— HTX (@HTX_Global) June 6, 2026
Therefore, HTX has temporarily halted trading on the following pairs: HTX WLFI/USDT, USD1/USDT, BTC/USD1, and ETH/USD1, at 13:00 UTC on June 5. The decision, according to the exchange, is aimed at safeguarding users, maintaining market fairness and minimizing potential systemic risks. Meanwhile, HTX also halted USD1 deposits and withdrawals until the situation becomes clearer.
Related Reading: Justin Sun Accuses WLFI of Secret Token Freeze Backdoor
Furthermore, HTX has changed all the USD1 balances of the users into USDT. The platform deposited the converted money into user’s accounts. The move, the exchange said, will offer further protection in the meantime.
HTX also said it didn’t get any detailed explanation from the WLFI team. The exchange said it does not have information on the scope, standards and resolution process of the freeze. Furthermore, HTX said that transparent communication should be provided along with any action that impacts user assets.
The exchange formally asked WLFI to lift the restrictions right away. HTX argued that the assets of lawful users should not be subject to abrupt restrictions without proper protocols. This resulted in a major controversy in the cryptocurrency industry.
User Ownership Debate Returns to the Spotlight
In the meantime, HTX took the opportunity to ask more general questions about the ownership of digital assets. The exchange questioned if users actually have control over their holdings when projects can freeze access at any time.
HTX also voiced its disappointment over the move. The exchange added that a lot of crypto companies are collaborating to eliminate the needless restrictions and assist affected users. But HTX stated that WLFI decided to freeze assets of token holders and supporters.
However, HTX assured users that the affected tokens are still on-chain. The exchange highlighted that the assets are not lost and are still on the blockchain. In addition, it guaranteed to resume withdrawals when WLFI removes the freeze and the circulation restrictions are lifted.
The controversy comes as regulators around the world tighten the screws on digital asset markets. As a result, compliance reviews are increasingly becoming a part of exchange operations and token management.
HTX will continue to suspend WLFI related services until it is resolved. The exchange said user protection is always its top priority. As the dispute continues to unfold, traders, investors, and industry participants will be closely monitoring for any additional updates from WLFI and HTX.
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