Crypto exchange HTX suspends services for Trump-backed WLFI token and USD1 after on-chain addresses were frozen over sanctions concerns.
Crypto exchange HTX suspended trading for WLFI and USD1 tokens after the Trump family-backed WLFI project froze HTX-related on-chain addresses, citing U.K. sanctions screening. The freeze lacked prior communication or clear legal justification, restricting user-held tokens from circulation.
HTX responded by halting WLFI-related trading and USD1 deposits and withdrawals. The platform forcibly converted all user USD1 holdings to USDT, crediting the equivalent funds to accounts. HTX stated the affected addresses belong to users, not sanctioned entities, and urged WLFI to unfreeze them immediately.
The move follows heightened scrutiny of crypto projects tied to political figures, with exchanges prioritizing compliance over user access. Market reaction remains limited as traders assess regulatory risks.