USD1 briefly drops to 0.997 USD, World Liberty Financial says it was a "coordinated attack"

USD1 – the stablecoin of World Liberty Financial – briefly dropped to $0.99707 on Monday morning. A fluctuation range of about 0.01%–0.03% is generally not considered a depeg unless it persists.

World Liberty, a crypto initiative backed by President Donald Trump and his family, stated that they faced a “coordinated attack.” According to the company, hackers gained unauthorized access to the X accounts of several co-founders, hired KOLs to spread FUD, and opened large short positions on $WLFI to profit from market volatility.

However, the company affirmed that the incident was not related to wallets or protocol infrastructure. No smart contracts were affected, and all USD1 tokens remain fully collateralized 1:1 with reserves held at BitGo, including US Treasury short-term bonds. After the fluctuation, USD1 quickly traded back near the $1 mark.

Meanwhile, the freely traded WLFI token of the project declined about 3% during the day.