World Liberty Financial Claims Coordinated Attack As USD1 Briefly Depegs Amid Hacked Accounts

TLDR

Table of Contents

USD1 fell to $0.994 and briefly touched $0.9802 USDT
WLFI claimed cofounder accounts were hacked
WLFI token dropped more than 8% during volatility
USD1 reports 1:1 backing and monthly reserve attestations

World Liberty Financial said its USD1 stablecoin faced a coordinated attack after hacked accounts and market pressure triggered a brief depeg. The token fell below its $1 peg but later traded near parity, according to market data.

The News should be in the angle of WLFI Claims Coordinated Attack as USD1 Briefly Depegs Amid Hacked Accounts. USD1 slipped to $0.994 during Monday trading. On some pairs, it reached $0.9802 USDT before recovering.

Hacked Accounts and Market Reaction

World Liberty Financial stated that several cofounder accounts were hacked. The team said attackers used these accounts to publish misleading posts. Influencers were also paid to spread fear and doubt, according to WLFI.

Eric Trump, a WLFI cofounder, deleted several posts related to the project on X. The deletions followed unusual activity on the accounts. Soon after, WLFI’s native token dropped more than 8% amid rising volatility.

World Liberty Financial (WLFI) said USD1 faced a “coordinated attack” this morning, alleging that several WLFI cofounder accounts were hacked, influencers were paid to spread FUD, and large WLFI short positions were opened to profit from the volatility.
— Wu Blockchain (@WuBlockchain) February 23, 2026

The team also claimed that large short positions were opened against WLFI. It said these trades aimed to profit from panic selling. WLFI described the activity as a planned effort to create market disruption.

USD1 Briefly Loses Peg

USD1 fell to as low as $0.994, or about 0.6% below its intended value. On certain trading pairs, it touched $0.9802 USDT before rebounding. CoinGecko data showed the token later trading around $0.998.

The stablecoin is designed to maintain a USD1 value. The drop came during increased trading volume and social media activity. However, prices moved back toward $1 within hours.

WLFI stated, “It didn’t work.” The team said the redemption mechanism helped restore balance. It added that holders can redeem USD1 for an equal amount of U.S. dollars.

Redemption Mechanism and Reserves

USD1 operates with a mint and redeem structure. This allows users to exchange tokens directly for dollars. WLFI said this system supports price stability during stress.

The stablecoin is issued in partnership with crypto custodian BitGo. According to BitGo, USD1 reserves are backed 1:1. These reserves include short term U.S. Treasury bills and dollar deposits.

The project reports monthly reserve attestations. Consulting firm Crowe signs these reports, based on company statements. The token’s market capitalization stands at about $5 billion.

Position in the Stablecoin Market

USD1 ranks among the larger dollar backed stablecoins. However, it trails market leaders such as Tether’s USDT and Circle’s USDC. USDT trades near $1.0001, based on available data.

Stablecoins are widely used for trading and transfers across exchanges. Even small price changes can trigger rapid trading activity. This can increase volatility in both the stablecoin and related tokens.

WLFI said no scammer could shake its long term commitment to USD1. The team maintained that the peg held due to full backing and redemption access. Trading activity later showed the token close to its intended price.

The incident adds to ongoing scrutiny around stablecoin stability. Market participants continue to monitor USD1 price movements and reserve disclosures.