World Liberty Financial (WLFI), the cryptocurrency project associated with President Donald Trump and his family, has reported a sophisticated “coordinated attack” on its USD1 stablecoin.
The alleged incident temporarily led to the stablecoin dipping below its $1 peg.
According to an official WLFI statement posted on X on February 23, attackers compromised several co-founder accounts, paid influencers to spread fear, uncertainty, and doubt (FUD), and opened large short positions on WLFI.
The statement alleged that the attackers’ goal was to trigger market panic and profit from the resulting volatility.
The team emphasized that USD1, a U.S. dollar-pegged stablecoin backed 1:1 by reserves including cash, U.S. Treasuries, and government money market funds held in custody by regulated provider BitGo, maintained its stability through its transparent mint-and-redeem mechanism.
Despite the pressure, USD1 quickly recovered and is now trading steadily at or near par, according to WLFI.
USD1 recovers
Market data showed USD1 briefly falling as low as $0.994 before rebounding to around $0.998–$0.999.
At the same time, the WLFI governance token experienced short-term price pressure, with some observers noting heightened volatility amid the claims.
Co-founder Zach Witkoff reinforced the project’s resilience in a follow-up post, highlighting USD1’s “100% backed” and “radically transparent” design, with verifiable reserves available on the official website.
The project urged users to rely exclusively on verified official channels for information and avoid unconfirmed claims amid heightened manipulation risks in politically linked crypto ventures.
WLFI has previously dealt with account compromises, including a February 2025 hack of Witkoff’s personal X account that promoted a fake meme coin tied to Barron Trump. Earlier user-side phishing exploits in 2025 also affected some holders, though the core protocol was not directly breached in those cases.
As of press time, no independent verification of the alleged account hacks or influencer payments has been publicly detailed by WLFI, and investigations into the claims remain ongoing.
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