Trump DeFi project was hacked, and short sellers targeted it! The stablecoin USD 1 briefly dropped to $0.9942.
The cryptocurrency project “World Liberty Financial (WLFI),” supported by the Trump family, was unexpectedly targeted by an “organized coordinated attack” on Monday (23rd). Its USD1 stablecoin price briefly dropped to $0.9942, drawing significant market attention.
World Liberty Financial posted on social platform X: “Attackers hacked multiple WLFI co-founders’ accounts, paid influencers to spread FUD, and simultaneously opened large $WLFI short positions, attempting to profit from this manufactured chaos.”
However, the official statement was firm: “Their scheme was thwarted. Thanks to USD1’s robust minting and redemption mechanism, along with 100% asset backing, the coin has now stabilized back to the $1 parity level.”
A coordinated attack was launched against USD1 this morning. Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive $WLFI shorts to profit from the manufactured chaos.
It didn’t work.
Thanks to USD1’s sound mint-and-redeem mechanism…
— WLFI (@worldlibertyfi) February 23, 2026
According to independent media outlet Wu Shuo Blockchain, World Liberty Financial co-founder and Trump’s second son, Eric Trump, deleted several WLFI-related posts on X before the USD1 price dipped.
As of now, the specific methods of this attack are not fully clear. It is understood that USD1’s reserves are managed by digital asset custodian BitGo, which holds high-liquidity short-term U.S. Treasuries.
Later on Monday, World Liberty Financial clarified that the attack only involved “unauthorized access to the co-founders’ X accounts” and did not affect any wallet protocol infrastructure. The official statement emphasized: “No smart contracts were impacted, and all USD1 funds remain secure with full reserves.”
In the cryptocurrency market, small price fluctuations in stablecoins are common due to bid-ask spreads, liquidity depth, price differences across exchanges, and arbitrage time gaps. Most experts believe that unless a decline persists for a long period, fluctuations of only 0.01% to 0.03% are generally not considered “depegging.” Currently, USD1’s trading price has also returned close to the $1 peg.
World Liberty Financial spokesperson David Wachsman stated:
“World Liberty’s top engineering and security teams successfully repelled this multi-front coordinated attack today. Hackers and paid rumor-mongers attempted to shake market trust in WLFI, but our proven infrastructure fully demonstrated its protective capabilities. This incident instead reaffirms that USD1’s design is correct and trustworthy under any circumstances.”
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