Crypto News: HTX Suspends WLFI and USD1 Trading Citing Systemic Risks

Key Insights:

• HTX is in the crypto news spotlight after suspending sanctioned addresses and launching a compliance review.
• HTX confirms plan to delist USD1.
• User assets to be converted into USDT.

The HTX exchange is on crypto news this weekend, courtesy of its decision involving the Trump family-linked WLFI and USD1 stablecoin. The two may no longer be available for trading on the exchange.

The latest crypto news revealed that HTX halted the trading of World Liberty Financial’s USD1 stablecoin and WLFI native crypto. The exchange reportedly made the decision after the World Liberty Financial team halted address activity on HTX.

According to the official HTX update on the matter, the WLFI team froze addresses due to compliance reviews and sanctions. HTX responded by suspending all activities involving WLFI and USD1 trading.

Crypto News | Source: HTX

The incident has raised concerns about centralization, given that the World Liberty Financial project team reportedly froze wallets. This was the main trigger for the HTX exchange’s decision to halt the WLFI and USD1 operations.

This was the reason why HTX described its course of action as a safeguard against potential systemic risks.

Crypto News: HTX Delists the USD1 Stablecoin

To emphasize the seriousness of the situation, the HTX exchange also decided to go the delisting route. The exchange announced that World Liberty Financial’s USD1 stablecoin would be delisted.

However, the delisting, scheduled to start on 7 June, was intended to be done with existing users in mind. The official HTX announcement revealed that all the USD1 held by users on the exchange would be converted to the USDT stablecoin at a 1:1 ratio.

The announcement made it clear that USD1 deposits will henceforth not be supported on the exchange. These protection measures were aimed at ensuring that users would not be affected by these changes.

There was no official confirmation on whether the USD1 stablecoin will be allowed back on the HTX exchange once the situation is ironed out.

HTX is so far the only crypto exchange that has halted USD1 and WFLI trading in the last few days. It was unclear whether other exchanges would do the same in the coming days. If other exchanges jump on the trend, USD1 may be canceled on centralized exchanges.

This latest crypto news has ended up benefiting USDT. However, it could be a major setback for World Liberty Financial. It also occurred during a bear market.

WLFI Crypto Falls Close to Record Lows

WLFI crypto was already feeling the heat even before the HTX crypto news. The World Liberty Financial native coin fell by roughly 15% from its weekly high to its weekly low this past week.

WLFI crypto fell to $0.053 on Friday, approaching its historic low. It exchanged hands at $0.055 at press time, after showing signs of easing sell pressure.

WLFI crypto price action | Source: TradingView

Despite the sell pressure last week, the cryptocurrency was not yet oversold. However, this does not necessarily mean that it is ready for a recovery. The HTX delisting underscores a looming challenge that could potentially trigger more negative sentiment among investors.

This latest situation adds to the challenges that World Liberty Financial has been experiencing. The list includes governance and centralization controversies, as well as lawsuits such as the one against Justin Sun.

WLFI was one of the top-most promising coins not so long ago. However, it now sits at an 80% plus discount. This heavy discount may make it appealing to speculative traders, but it also underscores the risk if the ongoing challenges fail to support a recovery further down the road.

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