World Liberty Financial Alleges Coordinated Attack on USD1 Stablecoin
According to WLFI’s official statement, a Feb. 24 attack drove USD1 to 0.9802 USDT and pushed WLFI down over 8% before stabilization, amid broader claims of account compromises and market manipulation.
USDT
USD1
Fact Check
Multiple high-credibility outlets (Financial Times, Bloomberg, Reuters) report that World Liberty Financial stated its USD1 stablecoin was targeted by a 'coordinated attack.' Crypto-focused publications cite and quote the company's official press release, indicating the allegation was made publicly. Exchange and market news posts also reproduce or summarize the same company claim. Coverage is consistent across independent sources and includes direct references to WLFI’s own statements. No credible source contradicts that WLFI publicly alleged this. Therefore, it is highly likely the statement is true.
Summary
World Liberty Financial issued an official announcement alleging a coordinated Feb. 24 attack on its USD1 stablecoin that depegged it to 0.9802 USDT and caused the WLFI token to fall over 8%. According to the company’s statement, attackers targeted co-founders’ accounts, paid influencers to spread FUD, and opened short positions; WLFI says the USD1 peg was restored. Separately, co-founder Eric Trump deleted a Binance-related tweet while continuing to promote crypto at the World Liberty Forum.
Terms & Concepts
- Stablecoin: A cryptocurrency designed to maintain a stable value by pegging to a reserve asset such as the U.S. dollar.
- Depeg: A loss of the intended price parity between a stablecoin and its reference asset, often due to market stress or liquidity shocks.
- USDT (Tether): A widely used U.S. dollar–pegged stablecoin, quoted as USDT on most exchanges.