The post Trump-Linked DeFi Project Says It Stopped Stablecoin Market Manipulation appeared on BitcoinEthereumNews.com.

Crime World Liberty Financial (WLFI), the decentralized finance venture linked to U.S. President Donald Trump and his family, says it has pushed back what it describes as a coordinated, multi-front attempt to destabilize its ecosystem. Key Takeaways WLFI says it stopped a coordinated attack targeting USD1 and the $WLFI token. USD1 briefly dipped below $1 to around $0.994 but recovered within hours. $WLFI fell about 7–8% before partially rebounding. No smart contracts or treasury wallets were breached, according to the team. In a statement released on February 23, 2026, the team said attackers tried to break the $1 peg of its USD1 stablecoin while simultaneously driving down the price of its native $WLFI token. According to the project, the goal was to spark panic selling and profit from short positions opened during the turmoil. How the Attack Unfolded WLFI characterized the episode as a deliberate effort to “manufacture chaos” across several fronts at once. Hackers reportedly gained unauthorized access to the X accounts of multiple co-founders, using the compromised profiles to spread misleading information about the protocol’s stability. At the same time, the team claims that certain social media influencers were paid to amplify negative narratives around USD1 and the broader project. On-chain data also pointed to sizable short positions being opened against the $WLFI token, suggesting that some traders were positioned to benefit from a sharp decline triggered by fear and uncertainty. Market Reaction: Brief Depeg, Token Drop The turbulence had an immediate but short-lived market impact. USD1, designed to maintain a strict 1:1 parity with the U.S. dollar, slipped below its peg during the episode. On some exchanges, it reportedly fell to around $0.994 before recovering back to $1 within hours. The $WLFI token saw a steeper reaction. Prices dropped roughly 7% to 8%, touching near $0.107 before…

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Filed under: News - @ February 24, 2026 12:30 pm