USD1 Stablecoin Holds Firm After Coordinated Attack Attempt

Highlights:

• World Liberty Financial reports a coordinated attack briefly disrupted the USD1 stablecoin before recovery.
• Attackers hacked co‑founder accounts, spread fear online, and executed heavy WLFI shorts.
• Company credits mint‑redeem design and full backing for restoring USD1 stability quickly.

World Liberty Financial, a Trump‑backed crypto venture, reported that attackers launched a “coordinated attack” on its USD1 stablecoin on Monday, February 23. The coin briefly wobbled but quickly regained stability. The team behind USD1 and the WLFI token said the attack combined account takeovers, social media manipulation, and large short bets designed to profit from panic.

On the morning of February 23, the USD1 stablecoin briefly slipped below its one‑to‑one value with the U.S. dollar on major exchanges before quickly recovering. At its lowest point, USD1 traded near $0.98 in some markets, but the dip lasted only minutes before the coin returned close to its peg. In a post on X, WLFI stated that the effort combined market pressure with account breaches and messaging designed to frighten holders and destabilize confidence.

In its statement, the firm reported that attackers compromised several co‑founder accounts, paid individuals to spread alarming messages across social platforms, and placed large short positions against WLFI, the ecosystem’s native token. According to the company, the strategy aimed to exploit panic and erode trust in the project.

USD1 Peg Holds Firm as WLFI Reassures Market After Attack Attempt

Despite these pressures, the company said, the attempt did not succeed in breaking the stablecoin’s dollar peg for long. It credited the design of USD1 and its economic mechanisms for stabilizing the token and restoring normal trading levels. “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 firm said in a social post. It also urges users to rely only on verified channels for accurate information.

The brief price dip also pulled down the WLFI token, which fell about 7% before partially recovering later in the session. At the time of writing, it was trading at $0.1117, showing a 1.43% decrease in the past 24 hours. Liquidity played a central role in the move, as heavy trading and shifting sentiment amplified volatility even though the project’s fundamentals remained intact.

The incident followed closely after World Liberty Financial hosted a high‑profile crypto forum at Trump’s Mar‑a‑Lago resort in Florida. The gathering brought together figures from government, finance, and the digital asset industry, including former Binance chief executive Changpeng Zhao, who received a presidential pardon in October. Earlier, Forbes reported on February 9 that Binance controlled nearly 87% of the USD1 supply in circulation, valued at approximately $4.7 billion at that time.

What Comes Next

Even though they tried their best to alleviate people’s concerns, this event has once again sparked people’s interest in the stability of stablecoins. In addition, it has shown how quickly prices can fluctuate when people start to lose trust in digital assets. Now, people are paying close attention. How they will communicate their strategies with people will be very important in the coming days. Trust is everything in the world of stablecoins. Without it, people can lose interest in it very quickly.