Trump-Backed Stablecoin Briefly Slips as World Liberty Claims 'Coordinated Attack'
On Monday, the Trump family’s crypto company, World Liberty Financial, saw its USD1 stablecoin briefly fall below its $1 peg, dropping to $0.9802 on Binance before quickly rebounding to parity within 30 minutes. The incident coincided with a 7% drop in World Liberty’s native WLFI token, which later partially recovered. World Liberty attributed the volatility to a “coordinated attack” involving hacked cofounder X accounts, paid online disinformation, and large short positions meant to destabilize WLFI and USD1. The company reported that its security and infrastructure successfully repelled the attack, and USD1’s mint-and-redeem mechanism maintained price stability. USD1 is currently the fifth-largest stablecoin, with a market cap of $4.93 billion. There is no independent verification of the alleged social media hacks, and it remains unclear if any attackers have been identified.
