World Liberty Financial's USD1 stablecoin has lost its peg to $1. - Happycoin.club
World Liberty Financial's USD1 stablecoin experienced a brief drop below its $1 peg due to a coordinated cyberattack involving hacking accounts, spreading rumors, and large short positions. The stablecoin quickly recovered to nearly $1,000, aided by assurances from co-founder Zach Witkoff regarding its backing and transparency. The attack caused short-term market pressure on WLFI's governance token, amid previous security incidents involving the project's team.
World Liberty Financial (WLFI), a cryptocurrency project linked to President Donald Trump and his family, has reported a sophisticated “coordinated attack” on its stablecoin USD1.
As a result, the stablecoin's price briefly fell below $1. This occurred because attackers hacked several of the co-founders' accounts, paid to spread rumors, and opened large short positions in WLFI, according to World Liberty Financial.
Having successfully caused panic in the market, they made a considerable profit from the resulting volatility.
Despite the pressure, the USD1 quickly recovered and regained its peg to the US dollar. After a brief dip to $0,994, the price recovered to $0,998–$0,999.
Token WLFI's governance also experienced short-term price pressure. In response, co-founder Zach Witkoff hastened to declare the USD1 project's resilience thanks to USD1's "100% backing" and "radical transparency." This seemed to improve the situation for both digital assets.
Vitkoff's social media account was previously hacked in February 2025 to promote a fake memecoin linked to Barron Trump. In 2025, some token holders also suffered phishing attacks.
Editor, works at Happy Coin News since 2016, turning the resource into a source of analytics on cryptocurrencies. Sees his goal of work in financial education.
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