USD1 briefly depegs as WLFI alleges coordinated attack; team says 1:1 backed stablecoin restored to $1 parity.

World Liberty’s USD1 Weathers Alleged Market Attack after the stablecoin briefly lost its dollar peg for the first time.

The WLFI ecosystem token faced volatility amid claims of a coordinated effort to trigger panic selling. The team restored the peg and confirmed that USD1 continues to trade at par.

USD1 Briefly Loses Peg Amid Alleged Attack

USD1, the stablecoin issued by World Liberty Financial, temporarily depegged from its $1 value.

Market data showed short-term price fluctuations before the token returned to parity. The incident marked the first recorded deviation from its peg.

WLFI stated that a “coordinated attack” targeted the stablecoin. The team alleged that several cofounder accounts were hacked.

WLFI claimed that paid influencers spread negative information while traders opened large short positions against the token.

According to WLFI, the attempt did not succeed. The team said USD1’s mint-and-redeem mechanism and full 1:1 backing supported stability.

“It didn’t work,” the project stated, adding that USD1 was trading steadily at par.

Market Structure and Supply Concentration

Reports indicate that Binance holds approximately 87% of the USD1 supply. This concentration has drawn attention from market observers.

Binance founder Changpeng Zhao was recently pardoned and has expressed interest in expanding in the United States.

TRUMP BACKED WORLD LIBERTY FINANCE WLFI ECOSYSTEM STABLECOIN USD1 DEPEG FOR THE FIRST TIME

WLFI says its USD1 stablecoin was under a coordinated attack. The team alleges hacked cofounder accounts, paid influencers spreading FUD & large short positions designed to trigger panic.… pic.twitter.com/KTzIwRw94a

— Money Ape (@TheMoneyApe) February 23, 2026

World Liberty Financial is linked to US President Donald Trump and his family. The project has faced scrutiny over its ownership structure and revenue generation.

Reports claim that the Trump family earned over $1.3 billion from crypto ventures.

Unverified claims also circulated that Eric Trump deleted WLFI-related posts during the incident.

These reports remain unconfirmed. WLFI has not publicly addressed those specific allegations.

Related Reading: World Liberty Financial Unveils World Swap Remittance Platform

Broader Market Context and Investor Sentiment

The event comes as stablecoins remain under close watch following past market failures.

The Terra Luna UST collapse in 2022 led to heightened scrutiny of algorithmic and asset-backed stablecoins. Investors continue to monitor peg stability during periods of volatility.

WLFI encouraged users to rely on verified channels for information. The team stated that no external actors could disrupt its long-term commitment to USD1.

It maintained that the stablecoin remains fully backed on a 1:1 basis.

The controversy has added to ongoing discussion around political ties and crypto markets.

Observers continue to track USD1’s liquidity, exchange listings, and on-chain activity.

Market participants are also monitoring any further statements from WLFI and related entities.

The post World Liberty’s USD1 Weathers Alleged Market Attack appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ February 24, 2026 7:20 am