Trump Family-Linked Stablecoin Briefly Depegs, WLFI Blames ‘Coordinated Attack’

The USD1 stablecoin, issued by World Liberty Financial (WLFI) and linked to business entities associated with Donald Trump and his family, briefly depegged on February 23, dropping to around $0.994 before rapidly regaining parity. WLFI attributed the disruption to a "coordinated attack," claiming hackers compromised cofounder accounts, spread false information, and initiated massive short positions to profit from panic selling. Despite the quick recovery, the incident sparked concern, drawing comparisons to the collapse of algorithmic stablecoins like TerraUSD, though WLFI asserts USD1 maintains full 1:1 reserves. Unverified social media reports also circulated alleging that Eric Trump deleted promotional posts related to USD1 during the volatility. The situation is further complicated by blockchain investigator ZachXBT announcing findings on alleged insider trading later that week, leading some users to speculate about WLFI's involvement, though no evidence supports this claim.

(Source：BeInCrypto)