World Liberty Financial (WLFI), a cryptocurrency project linked to Donald Trump, announced this morning that its USD1 stablecoin was subjected to a “coordinated attack.”
The company claimed that some WLFI co-founder accounts were compromised as part of the attack, influencers were paid to spread fear and uncertainty (FUD) on social media, and large amounts of WLFI short positions were opened in order to profit from price volatility.
Following these developments, Eric Trump, one of the co-founders of WLFI, deleted some of his posts related to WLFI on the X platform. This move caused the WLFI token price to briefly drop by over 8%. During the same period, the USD1 stablecoin also temporarily lost its stability, falling to 0.9802 USDT.
The company’s official statement said, “A coordinated attack was launched against USD1 this morning. The attackers hacked some WLFI co-founder accounts, paid influencers to spread FUD, and opened large WLFI short positions to profit from the chaos created. However, this attempt failed.”
WLFI stated that USD1 has resumed trading at parity, arguing that the stablecoin possesses a robust mint-redeem mechanism and full 1:1 asset backing. The statement also added, “No scammer can shake the long-term commitment of the WLFI team and its co-founders to USD1.”
*This is not investment advice.
