[Digital Today reporter Jinju Hong] Crypto exchange HTX has fully suspended support for the Trump family-linked stablecoin USD1. HTX said it decided to delist the token after claiming that issuer World Liberty Financial (WLFI) unilaterally froze an exchange-related on-chain address, citing sanctions compliance.

Cointelegraph, a blockchain media outlet, reported on June 8 (local time) that HTX said in a recent notice it would halt deposits and conversion services for USD1 and discontinue all related trading pairs.

The exchange said the World Liberty Financial project team froze a specific HTX on-chain address without prior consultation, limiting on-chain circulation of some assets linked to the address. HTX said it decided to stop supporting USD1 to protect user assets.

The measure took effect immediately. HTX said it would convert users' USD1 holdings into tether (USDT) at a 1-for-1 ratio, and would later announce the exact schedule and procedures. It also discontinued the WLFI/USDT, USD1/USDT, BTC/USD1 and ETH/USD1 trading pairs.

HTX criticised World Liberty Financial's action as taken without sufficient prior communication and said it lacked contractual or legal grounds as well as transparent disclosure procedures.

In a statement, the exchange said, "A unilateral address freeze is an act that infringes on the rights of users and user assets," and demanded that World Liberty Financial lift the freeze. It added that it is reviewing measures including legal action to protect user rights and interests.

An international sanctions issue underlies the dispute. The British government imposed sanctions on May 26 over HTX's predecessor Huobi Global, citing the possibility that it provided financial services to the Russian government. HTX said the sanctioned entity, Huobi Global S.A., and the currently operating HTX exchange are separate legal entities, and that the sanctions should not affect platform operations.

World Liberty Financial, the issuer of USD1, is a project that has U.S. President Donald Trump, Donald Trump Jr., Eric Trump and Barron Trump as advisers. The company has not publicly confirmed whether it froze a specific address in relation to HTX's claims. Instead, it said on June 4 on social media platform X, formerly Twitter, that it operates a risk-based sanctions compliance framework in consideration of recent changes in the sanctions-related environment.

The conflict has already expanded into a legal dispute. Justin Sun (저스틴 선), an adviser to HTX, filed a lawsuit in April saying World Liberty Financial froze his token without proper grounds and even threatened to burn it. World Liberty Financial countersued, alleging Sun spread false claims about the platform and violated WLFI token sale terms.

The industry sees the delisting of USD1 as more than a simple halt in trading support, and as a case in which a stablecoin issuer's authority to control assets directly clashes with an exchange's responsibility to protect users.

Market participants are expected to watch whether World Liberty Financial further explains the reasons for the address freeze, whether HTX moves ahead with legal action, and how the USDT conversion process for USD1 holders proceeds.