HTX halts WLFI and USD1 trading after token freeze over UK sanctions review

HTX suspended trading of WLFI and USD1 tokens after the World Liberty Financial (WLFI) team froze user tokens on HTX-linked addresses due to a UK sanctions compliance review. The exchange converted all USD1 holdings to USDT at a 1:1 ratio to protect users and halted USD1 deposits and withdrawals. This freeze stems from UK sanctions on Huobi Global, linked to HTX, for alleged Russian sanctions evasion. The incident highlights tensions between regulatory compliance and user control in crypto, with HTX awaiting WLFI to lift the freeze before resuming trading.