World Liberty Financial [WLFI] said a “coordinated attack” targeted its USD1 stablecoin on Monday, 23 February. This came after the token briefly slipped below its $1 peg amid a burst of online speculation and heavy trading.
In a post shared around mid-afternoon, World Liberty Financial claimed that attackers had compromised several accounts linked to cofounders.
Also, it claimed they amplified fear through social media and opened large short positions in WLFI-related markets to profit from the volatility. WLFI said the effort ultimately failed, pointing to USD1’s rapid return to parity.
“Thanks to USD1’s sound mint-and-redeem mechanism and full 1:1 backing, we are trading steadily at par,” the company said, urging users to rely on verified channels for accurate information.
Source: X
What triggered the volatility?
Market data shows USD1 trading slightly below $1 for a short period, with prices dipping to the $0.995–$0.998 range before rebounding.
The move coincided with heightened discussion on X following unrelated investigative teases by onchain investigator, ZachXBT. Some users speculated about links to the WLFI ecosystem.
Several posts claimed that Eric Trump — World Liberty Financial cofounder — had deleted WLFI-related messages, fuelling concern around the project.
However, a review of available posts shows no clear evidence that his account had previously published WLFI-related content.
While references to World Liberty Financial as a company do exist, a specific search for WLFI on his page didn’t yield any results. Claims of deleted token-specific posts cannot be independently verified.
Market response, not structural stress
Despite the sharp intraday move, USD1’s price action suggests a liquidity-driven reaction rather than a breakdown in the stablecoin’s backing or mechanics.
The token quickly reverted to trading at or near $1, consistent with WLFI’s assertion that mint-and-redeem flows absorbed selling pressure.
Source: CoinMarketCap
Also, analysis of the WLFI token showed it dipped around the same time as its stablecoin counterpart. Its price dropped to around $0.108 before bouncing back to around $0.113, as of this writing.
Source: CoinGecko
WLFI did not provide technical details to substantiate claims of hacked accounts or paid influencer activity, and no independent evidence has yet emerged confirming coordinated manipulation.
Still, the episode underscores how rapidly sentiment-driven narratives can impact even fully backed stablecoins in thin or reactive market conditions.
Final Summary
- USD1 briefly dipped below $1 but recovered quickly, suggesting liquidity stress rather than structural failure
- WLFI alleges a coordinated attack, though key elements of that claim remain unverified
Source: https://ambcrypto.com/wlfi-alleges-coordinated-attack-as-usd1-shrugs-off-brief-depeg/
