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 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 Wu Shuo Blockchain, Eric Trump, co-founder of World Liberty Financial and son of Donald Trump, deleted several WLFI-related posts on X before the USD1 price dipped.

As of now, the specific methods of this attack remain unclear. It is understood that USD1’s reserve assets are managed by digital asset custodian BitGo, which holds highly liquid 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 timing. 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 returned close to the $1 peg.

World Liberty Financial spokesperson David Wachsman stated:

“World Liberty’s top engineering and security teams successfully repelled a coordinated multi-front 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.”