HTX Exchange Delists USD1 Stablecoin Amid WLFI Asset Freeze
- On June 6, HTX announced the delisting of the USD1 stablecoin, effective June 7 at 11:00 UTC+8.
- HTX will convert eligible users’ USD1 holdings to USDT at a ratio of 1:1.
- The decision follows WLFI’s freezing of user assets linked to Huobi-related wallet addresses, impacting on-chain circulation.
- HTX had previously halted trading pairs involving WLFI due to security concerns.
- Justin Sun is involved in a legal dispute with WLFI, claiming wrongful asset freezes and potential asset destruction.
The suspension of the USD1 stablecoin by HTX aims to mitigate risks and protect user assets amidst ongoing compliance issues raised by WLFI’s actions. The exchange’s measures highlight the increasing scrutiny on stablecoins and their associated risks in the crypto market.
With HTX converting USD1 to USDT for users, this move underscores the impact of regulatory compliance on crypto trading platforms amid disputes like that between Justin Sun and WLFI. (Source)
