World Liberty Financial said it was targeted by a coordinated attack involving hackers, paid influencers and short sellers aimed at destabilising its USD1 stablecoin and WLFI token.
In a post on X, the company said attackers compromised “several WLFI cofounder accounts,” opened “massive shorts” and paid influencers to spread fear, uncertainty and doubt, triggering a roughly 7% drop in the WLFI token.
“Thanks to USD1’s sound mint-and-redeem mechanism and full 1:1 backing, we are trading steadily at par,”
Said World Liberty, adding that no scammer could shake the team’s long-term commitment to the stablecoin.
USD1 briefly slipped to about $0.994 before recovering above $0.999, while WLFI was trading near $0.1128 at publication after the volatility subsided.
The incident occurred days after a World Liberty-hosted crypto forum at Mar-a-Lago that included government, banking and industry figures, as well as former Changpeng Zhao, who was pardoned by President Donald Trump in October 2025.
According to a February report by Forbes, Binance holds about 87% of USD1 in circulation, worth roughly $4.7 billion at the time, though Zhao has said there are “no business relationships whatsoever” between himself and the Trump family.
Reports by Bloomberg and The Wall Street Journal that Binance helped create USD1, as well as its use in a $2 billion investment by UAE-based MGX into Binance, have intensified scrutiny from US lawmakers over potential conflicts of interest tied to the president’s family.
At the time of reporting, World Liberty Financial price was $0.1104.