"A freeze without transparency breeds distrust, not trust"
On June 5, 2026, HTX announced a trading halt after the WLFI (World Liberty Financial) operations team unilaterally froze certain HTX-related on-chain addresses citing sanctions compliance review.
📢 Announcement Article
https://www.htx.com.ph/support/65034989090157
🌟 Summary
・The WLFI operations team unilaterally froze certain HTX-related on-chain addresses
・There was insufficient prior explanation from the WLFI side
• The legal basis for freezes and the contractual basis are unclear
• The scope and the responsible parties are not disclosed
• USD1 held by users is gradually converted into USDT
The WLFI operating team has not provided clear explanations and has frozen assets.
This is evolving into doubts about DeFi’s fundamental design, so we all need to be careful!
💥 The essence of the problem is not “HTX vs WLFI”
At first glance, it looks like a conflict between HTX and WLFI, but the underlying issue is different.
In recent years in the crypto-assets industry, anti–money laundering measures, countering terrorist financing, and scam 대응 have been emphasized—so a freeze function can be considered a necessary feature.
＜What is the problem?＞
Technically, the issuer has stronger authority than asset holders—that's the problem!
Since USD1 is an issuer-managed stablecoin, of course it has a blacklist function.
As with this WLFI, if you hold a stablecoin with unclear contract terms and insufficient prior explanation, there is a danger that it can be stopped at any time.
In financial systems, trust is created not by “the strength of authority,” but by the transparency of how authority is exercised—we must not forget that either.
🏦 Propose switching from USD1 to USDD
If you currently hold USD1 on HTX, we recommend switching to USDD.
USDD is a decentralized over-collateralized stablecoin that @TRON DAO issues, and the benefits of holding it are not only the high yield exceeding 4%.
① Differences in asset management methods
USD1: issuer-led, centralized management, and strong freeze authority
• USDD: issued by the TRON DAO, with on-chain reserve disclosures, and oriented toward greater decentralization
② Compatibility with the TRON economic ecosystem
• On TRON, USDD has a wide range of use cases such as DeFi, staking, lending, and payments.
• Functions as one of the world’s largest USDT liquidity/issuance infrastructures.
• It also has a strong track record in stablecoin operations.
🤔 An educational perspective
What is important when choosing a stablecoin?
We need to think not about “which stablecoin is pegged to $1,” but about “who controls that $1”!
＜What is truly needed?＞
Transparency that enables regulatory compliance, and decentralization that protects users’ assets
The evolution of T3 FCU and USDD that TRON has been advancing in recent years can also be seen as attempts to explore that balance.