Trump-backed World Liberty Financial says USD1 short and social media attack fails as stablecoin briefly dips

World Liberty Financial (WLFI), a crypto initiative backed by the Trump family, issued an alert regarding a "coordinated attack" targeting its USD1 stablecoin. The dollar-pegged token briefly fell to approximately $0.99707 on Monday morning. WLFI claimed the attack involved hacking cofounder accounts, paying influencers to spread FUD (fear, uncertainty, doubt), and opening massive shorts on its $WLFI token to profit from manufactured chaos. The company asserted the attack failed due to USD1's sound mint-and-redeem mechanism and full 1:1 backing, noting it was trading steadily at par. USD1 is backed by reserves held in custody by BitGo, including short-term U.S. Treasuries. The article also notes the project's broader context, including its pursuit of a national trust bank charter and past controversies involving a significant stake purchase by a UAE entity before Donald Trump's inauguration.

(Source：The Block)