A stablecoin issued by the Trump family’s crypto firm fell below its $1 peg on Monday, following a series of events the project’s developers described as “manufactured chaos.”
In a Monday post on X, World Liberty Financial said the attack, which occurred earlier in the day, was unsuccessful. According to the firm, hackers targeted “several WLFI cofounder accounts,” initiated “massive shorts” against its WLFI token, and “paid influencers to spread FUD [fear, uncertainty, and doubt].”
According to the company, the price of World Liberty’s native token, WLFI, fell roughly 7% during the “manufactured chaos” but was trading at $0.1128 at the time of reporting. The Trump-linked stablecoin USD1 also dipped to around $0.994, some 0.6% from its intended $1 anchor.
USD1 is issued by World Liberty Financial, a crypto protocol with close links to President Donald Trump’s family. It is currently the fifth-largest stablecoin in the world, with a market capitalization of $4.72 billion, trailing major players like Tether’s USDT and Circle’s USDC.
“It didn’t work. Thanks to USD1’s sound mint-and-redeem mechanism and full 1:1 backing, we are trading steadily at par,” World Liberty opined. “No scammer can shake the long-term commitment of the entire WLFI team and cofounders to USD1.”
The details of the alleged attack remain unclear. USD1 is backed by reserves held with BitGo, including short-term U.S. Treasuries. Later on Monday, World Liberty Financial clarified that the incident “involved unauthorized access to co-founders’ X accounts — not wallets or protocol infrastructure.”
“Zero smart contracts were affected. All USD1 funds remain completely safe, secure, and fully backed. Our infrastructure and team operated exactly as designed,” World Liberty stated.
Minor price swings in stablecoins are common, driven by trading spreads, liquidity variations, exchange differences, and arbitrage delays. Pundits generally say that a 0.01%-0.03% fluctuation isn’t considered a depeg unless it persists for a prolonged period.
At press time, the token trades at around $0.998, still some 0.2% below its intended dollar peg, CoinGecko shows.
“World Liberty’s elite engineering and security teams today successfully repelled a coordinated attack from multiple vectors,” a company spokesperson said in a statement. “Hackers and paid-disinformation campaigns attempted to undermine trust in WLFI, but their battle-tested infrastructure and systems operated exactly as they should.”
The incident occurred just days after a crypto forum hosted by World Liberty Financial at President Donald Trump’s private Mar-a-Lago resort in Florida. The event featured speakers from the U.S. government, the crypto and banking sectors, and former Binance CEO Changpeng Zhao, whom Trump pardoned in October 2025.
