Trump Stablecoin USD1 Drops to $0.98 in Alleged Coordinated Attack
World Liberty Financial claimed hackers breached cofounder accounts and coordinated with paid influencers to spread fear while shorting WLFI tokens, causing USD1 to briefly slip below its dollar peg Monday morning.
World Liberty Financial blamed hackers and paid influencers after its USD1 stablecoin briefly lost its dollar peg Monday morning.
USD1 dropped to $0.9802 on Binance around 8:15 am ET, falling from its $0.9990 target. CoinGecko showed a smaller slip to $0.994. The Trump family's crypto company issued a statement claiming attackers hacked several cofounder accounts and paid influencers to spread fear while opening massive short positions on WLFI tokens to profit from the chaos.
A World Liberty Financial spokesperson said the company's engineering and security teams successfully repelled the attack from multiple vectors. The spokesperson added that the company's infrastructure and systems operated exactly as they should.
The USD1 stablecoin recovered to full parity within 30 minutes of the initial drop. WLFI tokens fell roughly 7% during the incident, dropping from $0.117 to $0.109 before climbing back to $0.113.
World Liberty Financial raised ₱34.26 billion ($590 million) from 85,000 accredited investors in its WLFI token presale last year, making it the eighth largest private token sale ever. Donald Trump serves as Chief Crypto Advocate for the project, with sons Barron, Donald Jr., and Eric holding advisory roles. USD1 now holds a market capitalization of ₱286.25 billion ($4.93 billion), ranking as the fifth-largest stablecoin in the world.
This article was written based on reporting from Decrypt.
