Hackers attacked USD1, a stablecoin issued by WLFI, the Trump family’s crypto company, where several WLFI cofounders’ accounts were compromised to pay influencers to spread FUD. The stablecoin lost its dollar peg, falling to around $0.994 before quickly recovering.
Stablecoin USD1 under coordinated attack
The World Liberty Financial Institute (WFLI) faced an intentional hacker attack to open a massive $WLFI shorts to profit from what the company called a “manufactured chaos,” according to their official post on X.
However, the firm’s instilled mint-and-redeem mechanism prevented the attack from succeeding.
The stablecoin, USD1, fell from a trading value of 0.9990 USDT down to 0.9802 USDT on the crypto exchange platform Binance. Aggregators like CoinGecko also marked the dip at $0.994.
However, in a timespan of around 30 minutes, the token rose back to full parity with USDT. USD1 remains the world’s fifth-largest stablecoin, with a market capitalization of $4.93 billion.
Market reacts as USD1 holds its ground
Despite the rapid recovery, the incident triggered widespread concern across the crypto community. Some users called it fake propaganda that was done by the president.
“Without data and facts, this is just failed and made-up narrative in Trump style,” an X user wrote.
However, David Wachsman, a WLFI spokesman, told the media, “World Liberty’s elite engineering and security teams today successfully repelled a coordinated attack from multiple vectors. Hackers and paid disinformation campaigns attempted to undermine trust in WLFI, but our battle-tested infrastructure and systems operated exactly as they should. Today’s attack is a further demonstration that USD1 was properly designed and can be relied upon under any conditions.”
They further questioned the authenticity behind Eric Trump’s actions, as his post on WLFI got deleted, yet the screenshots circulated on X feed.
