Trump-Affiliated USD1 Stablecoin Briefly Slips Amid Alleged Coordinated Attack, WLFI Token Falls 7%

WLFI Cites Compromised X Accounts, Short Positions and Influencer FUD as USD1 Quickly Recovers to Parity

TL;DR

• USD1 dropped to $0.9942 on Feb. 23, 2026 before returning to $1 following what WLFI called a coordinated attack.
• WLFI said co-founder X accounts were compromised and large short positions targeted its governance token, which fell about 7%.
• USD1 market capitalization stood near $4.7 billion, ranking it fifth among stablecoins by coin market cap.

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USD1, the dollar-pegged stablecoin issued by World Liberty Financial (WLFI), briefly fell to $0.9942 on Feb. 23, 2026 before returning to its $1 peg, according to COIN360 data tracking the crypto price index. The token’s decline unfolded during heightened volatility across digital assets, with broader crypto price moves amplifying attention around the incident. The stablecoin later stabilized at parity against the U.S. dollar.

World Liberty Financial described the episode as a “coordinated attack” targeting its ecosystem. In statements posted to X, the project said multiple vectors were used, including compromised co-founder accounts and paid influencers spreading misinformation designed to undermine confidence in USD1. The team also alleged that attackers opened large short positions against the WLFI governance token in an attempt to profit from panic-driven selling.

Project representatives said hackers gained unauthorized access to several co-founder X accounts during the morning hours of the event. Messages posted from those accounts were described as misleading, according to WLFI’s account of events. The company said internal security teams moved to secure access and limit further dissemination of unauthorized posts.

Price fluctuations varied across trading venues. While the broader market showed the token touching $0.9942 before recovering, one exchange recorded a deeper intraday move to $0.9802. USD1 returned to near $1 shortly after the volatility, according to COIN360 crypto price data.

The WLFI governance token declined about 7% during the episode, falling from roughly $0.117 to a range near $0.109–0.112 amid heightened selling pressure. Market activity in WLFI coincided with the stablecoin’s brief deviation from parity.

WLFI stated that no smart contracts, wallets or protocol infrastructure were breached. The team maintained that all USD1 reserves remain intact and fully backed 1:1 by cash and short-term U.S. Treasuries held through BitGo Trust Co. The project attributed the rapid restoration of the peg to its mint-and-redeem mechanism.

“It didn’t work,” WLFI said in a public message addressing the alleged attackers. The statement followed the stabilization of USD1 at $1 and the containment of unauthorized social media activity.

On-chain monitoring during the event showed no large-scale liquidity withdrawals or unusual whale transactions, according to summaries circulated by the project. USD1 supply levels remained unchanged during the period of volatility, and trading activity consisted largely of smaller swaps under $10,000 on Solana with limited movement observed on Ethereum.

USD1’s market capitalization stood near $4.7 billion at the time of the incident, placing it fifth among stablecoins by coin market cap. The project had recently hosted a WLFI forum at Trump’s Mar-a-Lago resort, drawing attention to its political associations and positioning within the broader digital asset sector.

Broader crypto price movements were already under pressure during the session, contributing to heightened sensitivity in stablecoin trading pairs. Bitcoin and Ethereum recorded declines during the same trading window, according to the COIN360 crypto price index.

Questions circulated on social media regarding deleted and reposted messages tied to WLFI-related accounts, though no formal investigation or evidence was announced in connection with those claims as of the reporting date. WLFI urged users to rely on official communication channels for accurate information during the incident.

This article has been refined and enhanced by ChatGPT.