Trump-Backed Stablecoin Briefly Slips as World Liberty Claims 'Coordinated Attack'
Analysis
Price Impact
MedThe stablecoin usd1 briefly depegged, causing its native token wlfi to drop 7%. while the stablecoin recovered quickly, the incident highlights potential vulnerabilities and erodes confidence, which could affect the price of both tokens.
Trustworthiness
LowThe company claims a 'coordinated attack' involving hacked accounts and disinformation. however, these claims are difficult to independently verify, and the quick recovery of the stablecoin could also be attributed to market manipulation or technical issues.
Price Direction
NeutralThe stablecoin usd1 quickly regained its peg, and wlfi has partially recovered its losses. the market may wait for more concrete evidence of the attack or for assurances of enhanced security before a clear price direction emerges.
Time Effect
ShortThe immediate price impact was felt during the incident, with a quick recovery. further price movements will depend on the follow-up actions and clarifications from world liberty financial.
Original Article:
Article Content:
In brief USD1 briefly slipped below its dollar peg on Binance, falling to a value around $0.98 before recovering within minutes. Around the same time, the company’s native token, WLFI, dropped roughly 7%. World Liberty claimed it repelled a “coordinated attack” involving hacked X accounts, disinformation, and short-selling. A stablecoin issued by the Trump family’s crypto company briefly slipped from its dollar peg Monday, after a series of events the company later claimed to be “manufactured chaos.” At roughly 8:15 am ET on Monday morning, the stablecoin, USD1, fell from a trading value of 0.9990 USDT, down to 0.9802 USDT on Binance, the popular crypto exchange. Other sites, including price aggregator CoinGecko , showed the slip as smaller, to $0.994. Within 30 minutes of the incident, the token rose again to full parity with USDT , the world’s top dollar-pegged stablecoin. It has since remained at that price. A coordinated attack was launched against USD1 this morning. Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive $WLFI shorts to profit from the manufactured chaos. It didn’t work. Thanks to USD1’s sound mint-and-redeem mechanism… — WLFI (@worldlibertyfi) February 23, 2026 USD1 is issued by World Liberty Financial, the Trump family’s crypto company. It is currently the fifth-largest stablecoin in the world, with a market capitalization of $4.93 billion. Around the same time that USD1 briefly fell below a dollar, World Liberty’s native token, WLFI, abruptly dropped roughly 7%, from $0.117 to $0.109. The token has since partially made up those losses by climbing up to $0.113 at writing. World Liberty soon thereafter announced that the company had been the subject of a “coordinated attack” that involved the hacking of company co-founders’ X accounts, “paid influencers” spreading negative information about World Liberty online, and massive short positions opened against WLFI to “profit from the manufactured chaos.” “World Liberty’s elite engineering and security teams today successfully repelled a coordinated attack from multiple vectors,” a company spokesperson told Decrypt . “Hackers and paid-disinformation campaigns attempted to undermine trust in WLFI, but their battle-tested infrastructure and systems operated exactly as they should.” Decrypt could not independently verify any posts made to the X accounts of World Liberty’s co-founders that appeared to be written by hackers. The World Liberty spokesperson did not immediately respond when asked if the company has identified any alleged hackers. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Your Email Get it! Get it!