Trump-Backed World Liberty Financial Fends Off ‘Coordinated Attack’ on USD1 Stablecoin

World Liberty Financial ($WLFI), a cryptocurrency project notably backed by the Trump family, announced on Monday, February 23, 2026, it had successfully countered an “organized coordinated attack” targeting its USD1 stablecoin. The incident saw USD1’s price briefly dip to $0.9942, sparking significant market attention before a swift recovery.

Details Emerge of Sophisticated Attack

In a public statement shared on the social media platform X, World Liberty Financial detailed the multi-pronged assault. The company alleged that attackers gained unauthorized access to the accounts of several WLFI co-founders, employed paid influencers to disseminate Fear, Uncertainty, and Doubt (FUD), and simultaneously opened substantial short positions on the $WLFI governance token. The overarching goal, according to WLFI, was to exploit the resulting market chaos for financial gain.

However, the project asserted its resilience, declaring: “Their conspiracy did not succeed. Thanks to USD1’s sound mint-and-redeem mechanism, and 100% one-to-one asset reserves, the coin price has now stabilized back to the $1 peg.”

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

Eric Trump’s X Activity Raises Questions

Amidst the unfolding events, reports from crypto media outlet Wu Blockchain indicated that Eric Trump, a co-founder of World Liberty Financial and son of former President Donald Trump, had deleted several WLFI-related X posts prior to USD1’s temporary price dip. The specific connection between these deletions and the alleged attack remains unclear, adding a layer of intrigue to the incident.

The precise methods employed in the attack are still under investigation. USD1’s asset reserves, which include highly liquid short-term U.S. Treasury bonds, are securely held by digital asset custodian BitGo.

Infrastructure Remains Secure, Funds Unaffected

Later on Monday, World Liberty Financial issued a clarification, reassuring the community that the attack was limited to “unauthorized access to co-founder’s X accounts” and did not compromise any wallet protocol infrastructure. “No smart contracts were affected, all USD1 funds remain safe and fully reserved,” the official statement affirmed, emphasizing the integrity of the stablecoin’s underlying technology.

Market experts often note that minor price fluctuations in stablecoins (typically 0.01% to 0.03%) are common. These can arise from factors like bid-ask spreads, varying liquidity across exchanges, and arbitrage opportunities. Such brief deviations are generally not considered a “de-peg” unless they persist over an extended period. Following the incident, USD1 has firmly re-established its $1 peg.

WLFI Spokesperson Commends Team’s Resilience

David Wachsman, spokesperson for World Liberty Financial, lauded the swift response from his team:

“World Liberty’s top engineering and cybersecurity teams today successfully repelled a coordinated attack from multiple fronts. Hackers and paid disinformation campaigns attempted to shake market trust in WLFI, but our battle-tested infrastructure fully performed its protective function. This incident once again proves that USD1’s design is correct, and trustworthy under any circumstances.”

While the USD1 stablecoin quickly stabilized, the project’s native governance token, $WLFI, did not escape unscathed, experiencing an approximately 3% decline on the day of the attack.