World Liberty Financial, one of the Trump family’s major crypto initiatives, sent an alert on Monday morning warning of a “coordinated attack” against its USD1 stablecoin. The dollar-pegged token briefly fell to about $0.99707 on Monday morning, The Block’s data shows.
“Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive $WLFI shorts to profit from the manufactured chaos,” the company posted on X. “It didn’t work. Thanks to USD1’s sound mint-and-redeem mechanism and full 1:1 backing, we are trading steadily at par.”
World Liberty co-founder Eric Trump deleted several WLFI posts on X prior to the coin’s move lower, according to market observer Wu Blockchain.
The mechanism of the alleged attack is unclear at the time of writing. USD1 is backed by reserves held in custody by BitGo, including short-term U.S. Treasuries. The token is currently trading closer to its $1 peg.
Tiny stablecoin price deviations happen nearly constantly due to trading spreads, liquidity, exchange differences, and arbitrage lags. A 0.01%-0.03% price fluctuation is generally not considered to be a depeg, unless sustained for a significant period of time, according to most experts.
WLFI, the project’s free-floating token, dropped about 3%, according to The Block’s price page.
Earlier this year, WLTC Holdings LLC filed an application to establish a national trust bank to expand its USD1 operations. World Liberty is also involved in crypto lending.
The Trump-backed company drew controversy earlier this year over potential conflicts of interest after a United Arab Emirates-based entity used the USD1 stablecoin to facilitate a $2 billion investment in Binance. Additionally, an Abu Dhabi investment vehicle backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan purchased a 49% stake in World Liberty Financial for $500 million before President Donald Trump’s inauguration.
Binance, the world’s largest cryptocurrency exchange formerly led by Changpeng Zhao, who President Trump pardoned, also elevated the status of USD1 as a trading pair on its platform.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
