The stablecoin USD1, issued by the Trump family’s cryptocurrency company World Liberty Financial, briefly lost its dollar peg on Monday, falling to a value around $0.98 on Binance. The company’s native token, WLFI, dropped roughly 7% around the same time. World Liberty claimed it repelled a coordinated attack involving hacked social media accounts, disinformation, and short-selling, with its spokesperson stating the event was an attempt to undermine trust that its systems successfully countered.
The USD1 stablecoin slipped from its dollar peg early Monday, trading down to approximately $0.98 on the Binance exchange before recovering within 30 minutes. CoinGecko data showed a smaller dip to around $0.994.
Simultaneously, the company’s native WLFI token fell about 7% from $0.117 to $0.109. The token has since partially recovered, trading at $0.113 at the time of reporting.
World Liberty Financial later stated it was targeted by a “coordinated attack.” The company alleged attackers hacked co-founder accounts, paid influencers to spread fear, and opened large short positions against WLFI.
“A coordinated attack was launched against USD1 this morning,” the company stated. “Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive $WLFI shorts to profit from the manufactured chaos.”
A company spokesperson told media that its teams “successfully repelled a coordinated attack from multiple vectors.” “Hackers and paid-disinformation campaigns attempted to undermine trust in WLFI, but their battle-tested infrastructure and systems operated exactly as they should,” the spokesperson said.
The claims regarding hacked social media accounts could not be independently verified. USD1, the world’s fifth-largest stablecoin with a $4.93 billion market cap, has maintained its peg since the brief incident.
