World Liberty later clarified that unauthorized access involved co-founders’ X accounts rather than wallets or core infrastructure. The company stated that no smart contracts were affected and that all USD1 funds remain secure and fully backed.
USD1 holds reserves in custody with , including short-term US Treasuries. World Liberty said its infrastructure and team operated as designed during the incident. A company spokesperson told The Block that engineering and security teams repelled a coordinated attack from multiple vectors.
According to the Financial Times, BitGo compiles and checks USD1’s monthly reserve reports. Crowe LLP then examines those reports under attestation standards set by the American Institute of Certified Public Accountants.
Arkham data shows that almost $4.5 billion of sits on the Binance exchange. Binance co-founder Changpeng Zhao attended a World Liberty conference last week. Zhao pleaded guilty in 2023 to failing to maintain anti-money laundering controls at Binance and received a presidential pardon in October.
Earlier, Zach Witkoff announced that Abu Dhabi investment vehicle MGX used USD1 to complete a $2 billion investment in Binance. That transaction placed the stablecoin at the center of a major institutional deal.
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