Justin Sun crypto exchange halts trading of Trump family stablecoin

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Delisting of USD1 on HTX

Delisting details

The delisting took effect on Sunday. Deposits and conversion services for USD1 are no longer supported, while users’ USD1 balances will be converted into Tether (USDT) at a 1:1 ratio. The exchange said the exact timeline for completion and additional details will be announced separately.

HTX has also suspended trading for the WLFI/USDT, USD1/USDT, BTC/USD1 and ETH/USD1 pairs.

In its statement, the exchange said its addresses had been frozen “without sufficient prior communication, adequate contractual or legal grounds, transparent disclosure, or adherence to due process.” HTX believes these actions violate users’ rights and restrict access to their assets. The platform called on WLFI to reverse the freeze.

HTX also said it intends to take measures to protect users’ legitimate rights and interests, including possible legal action.

World Liberty Financial, whose advisers include U.S. President Donald Trump and his three sons — Donald Jr., Eric and Barron — has not publicly confirmed whether it froze HTX’s addresses.

On Wednesday, the project wrote on X that “in light of recent sanctions updates, World Liberty Financial maintains risk-based sanctions compliance controls.”

The conflict between Sun and Trump

Justin Sun, who reportedly owns HTX and sits on the exchange’s global advisory board, filed a lawsuit against World Liberty in April. He claimed the platform had frozen his tokens and threatened to burn them “without any proper justification.”

In May, World Liberty filed its own defamation lawsuit against Sun. The project alleged that he had made false statements about the platform and violated the terms of the WLFI token sale through alleged prohibited transfers, short selling and straw purchases.

The end of an alliance?

Until recently, Justin Sun appeared to be one of the most prominent allies of Trump’s crypto wing. He publicly supported Trump’s agenda, invested tens of millions of dollars in World Liberty Financial and, in effect, bet that the new U.S. president’s team would become the center of the country’s future crypto policy. For Sun, this was not simply an investment in yet another token, but an attempt to secure a place close to a political force that had promised the crypto industry a new stage of development.

Instead of a long-term partnership, however, the story ended in open conflict. World Liberty Financial froze tokens linked to Sun, stripped him of his voting rights and, according to him, even threatened to burn the assets without clear explanation. As a result, a man who invested tens of millions of dollars in Trump’s ecosystem and was considered “one of their own” ended up in court against the very project he had backed. That is why this conflict looks like more than just a dispute between an investor and a company — it looks like the final breakdown of an alliance in which former partners have definitively fallen out.

As a reminder, a year ago USD1 became the seventh-largest stablecoin.

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