Trump Bros' WLFI Shook as Hackers Infiltrate - Yahoo Finance

BREAKING NEWS

World Liberty Financial (WLFI), the Trump family’s crypto venture and issuer of the USD1 stablecoin, had a bumpy start to the week. The company said there was a “coordinated attack” on the credibility of its platform.

Hackers didn’t go after the platform for money, but instead went after key co-founder social media accounts, hired “FUD” influencer campaigns, and opened a short position on the actual WLFI token.

Oh, and USD1, their stablecoin pegged to the U.S. dollar, briefly slipped to $0.994. (USD1 has since recovered to its $1 peg.)

Eric Trump was also caught deleting a few tweets, celebrating the “amazing few days” World Liberty Financial had until the hack. The company hosted the World Liberty Financial Forum at Mar-a-Lago last week.

“Thanks to USD1’s sound mint-and-redeem mechanism and full 1:1 backing, we are trading steadily at par. No scammer can shake the long-term commitment of the entire WLFI team and cofounders to USD1,” the company said in a statement.

Eric Trump followed up: “USD1 is the second largest GENIUS-compliant stablecoin in the market!!” and referenced “Growing volume, Expanding exchange integration, Increasing real-world usage, Radical,” and “Transparency including real-time proof of reserves.”

Putting aside the fact that a few hacked X handles and some malicious tweets de-pegged a stablecoin valued at approximately $5 billion, and called into question WLFI’s governance platform (worth around $3 billion), this is a reminder that the Trump’s “crypto career” as of late looks more self-serving than anything.

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Bitcoin, after a run to all-time highs from $110,000 in early April of last year to $125,000 in early October, has been tumbling. The rest of crypto, including Ethereum and alt-coins, are all but dead.

And when was the last time President Trump mentioned the heralded Bitcoin Reserve? Worse, Senator Cynthia Lummis (R-Wyoming), one of Bitcoin’s biggest supporters in Congress, is retiring from the U.S. Senate. Her last day will be January 3, 2027.\

So the mood in the crypto-world is, in no uncertain terms, bad. A Bloomberg report found that WLFI and American Bitcoin Corp., both backed by the Trumps, have accumulated roughly $1.3 billion in under a year. And of course, there are the president’s and first lady’s meme-coins, $TRUMP and $MELANIA, which made insiders a lot of money. All in all, they realized gains of $600 million to $1.2 billion through trading fees, early sales, and deployments. On the other hand, retail absorbed over $4.3 billion in total losses, per CryptoRank.