USD1 briefly dips below peg amid alleged coordinated attack

USD1, the stablecoin issued by World Liberty Financial, briefly fell to $0.99707 on Monday morning. Such a 0.01%–0.03% deviation is generally not considered a depeg unless it persists for an extended period.

World Liberty, a crypto initiative backed by President Donald Trump and his family, said it faced a “coordinated attack.” The company alleged that hackers gained unauthorized access to several co-founders’ X accounts, paid influencers to spread FUD, and opened large short positions in $WLFI to profit from the volatility.

The firm stressed that the incident did not involve wallets or protocol infrastructure. No smart contracts were affected, and USD1 remains fully backed 1:1 by reserves held with BitGo, including short-term U.S. Treasuries. The token has since returned to trading close to its $1 peg.

Meanwhile, WLFI, the project’s freely traded token, fell about 3% on the day.