World Liberty Financial Faces Cyber Assault: Resilience of USD1 Stablecoin
World Liberty Financial Inc. (WLFI), a prominent cryptocurrency initiative linked to Donald Trump and his family, recently encountered a sophisticated cyber threat targeting its USD1 stablecoin. This event temporarily disrupted the stablecoin’s $1 value peg.
Unraveling the Attack on USD1
On February 23, WLFI issued an official statement on the social media platform X, detailing a targeted attack that compromised several accounts of its co-founders. The attackers reportedly hired influencers to disseminate fear, uncertainty, and doubt (FUD), while simultaneously initiating large short positions on WLFI. The motive behind these actions was to incite market panic and capitalize on the ensuing volatility.
Advertisement Banner
Coordinated Cyber Assault on WLFI
The orchestrated attack aimed to destabilize USD1, as attackers infiltrated multiple WLFI co-founder accounts and manipulated market sentiment. Despite their efforts, the scheme was thwarted due to USD1’s robust mint-and-redeem mechanism, which played a crucial role in maintaining stability.
USD1’s Robust Defense and Recovery
USD1 is a stablecoin pegged to the U.S. dollar, backed at a 1:1 ratio by reserves that include cash, U.S. Treasuries, and government money market funds, all safeguarded by the regulated custodian BitGo. This transparent financial architecture allowed USD1 to swiftly recover, stabilizing its trading value close to its intended peg.
Swift Recovery of USD1
Market reports indicate that USD1 briefly dipped to $0.994 before recovering to approximately $0.998–$0.999. During this period, the WLFI governance token experienced temporary price fluctuations, with observers noting increased volatility amid the unfolding scenario.
Emphasizing Resilience and Transparency
In a subsequent communication, co-founder Zach Witkoff underscored USD1’s durability, highlighting its “100% backed” and “radically transparent” framework, with verifiable reserves accessible on the official website. The project urged users to trust only official channels for updates, especially in politically sensitive crypto environments prone to manipulation.
Challenges and Ongoing Investigations
WLFI has previously encountered account breaches, including a notable hack of Witkoff’s personal X account in February 2025, which falsely promoted a meme coin associated with Barron Trump. Additionally, phishing attempts in 2025 impacted some users, though the core protocol remained secure. As of now, no independent verification of the recent account hacks or influencer payments has been disclosed, and investigations continue.
For ongoing updates and reliable information, stakeholders are encouraged to consult WLFI’s verified communication channels.
