A cryptocurrency firm backed by the family of former President Donald Trump claims it was targeted by a coordinated attack involving hackers, short sellers, and social media influencers. World Liberty Financial stated the effort aimed to destabilize its USD1 stablecoin and WLFI token but ultimately failed. The incident follows recent scrutiny over the company’s connections to Binance, which reportedly holds the vast majority of USD1 in circulation.
The company World Liberty Financial reported being targeted by hackers, “paid influencers,” and short sellers in an effort to “manufacture chaos” against its USD1 stablecoin. In a social media post, the firm said hackers targeted several cofounder accounts and opened massive short positions against the WLFI token.
The price of WLFI dipped by about 7% amid the attack, while USD1 briefly lost its dollar peg. “Thanks to USD1’s sound mint-and-redeem mechanism and full 1:1 backing, we are trading steadily at par,” stated World Liberty in its post.
This incident occurred days after a crypto forum hosted by the company at Trump’s Mar-a-Lago resort. The event featured former Binance CEO Changpeng Zhao, whom President Trump pardoned in October 2025.
According to a report, Binance holds about 87% of the USD1 in circulation, worth approximately $4.7 billion. Some U.S. lawmakers are questioning potential connections between World Liberty and Binance entities following Zhao’s pardon.
Both Bloomberg and The Wall Street Journal have reported that Binance helped create the USD1 stablecoin. The stablecoin was also used to settle a $2 billion investment by a UAE-based company into Binance in March 2025.
