Yeliz Akmaca 
The crypto market started the week with an unexpected test of confidence. Trump World Liberty Financial (WLFI) announced on Monday morning that a coordinated attack had targeted its USD1 stablecoin. The company said attackers gained unauthorized access to co-founders’ social media accounts, ran paid disinformation campaigns, and simultaneously opened large WLFI short positions. During the incident, USD1 briefly dropped to $0.99707, but the deviation did not last and the stablecoin soon moved back toward its $1 level.
At first glance, the price movement seems minor. Stablecoins often experience tiny fluctuations. But the real focus here is not just the price. It is the sequence of events happening at the same time. Account breaches, deleted posts, and coordinated short position claims. Individually, these details might seem ordinary. Together, they point to something more complex.
These kinds of deviations sometimes resolve without notice. This time, however, it drew attention.
Social media accounts were compromised
According to WLFI’s statement on X, attackers gained unauthorized access to several co-founder accounts. Posts made from these accounts spread quickly and created uncertainty among market participants. The project claimed the attackers also paid certain influencers to accelerate the spread of fear, uncertainty, and doubt.
In a follow-up clarification, WLFI emphasized that the attack was limited to social media access. Wallets, smart contracts, and protocol infrastructure were not affected. The system continued operating normally.
WLFI spokesman David Wachsman confirmed the attack involved multiple vectors, combining social media access with coordinated disinformation efforts. Despite this, the underlying infrastructure remained stable.
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
USD1 briefly lost ground
During the incident, USD1 fell to approximately $0.99707. The drop was temporary. The stablecoin quickly moved back toward its nominal value.
Small stablecoin deviations occur frequently due to liquidity spreads, arbitrage timing, and exchange price differences. Experts generally do not classify short-lived movements in this range as a structural depeg. USD1’s deviation, while noticeable, did not persist.
WLFI stated that USD1’s mint-and-redeem mechanism functioned as intended and that the stablecoin remains fully backed on a 1:1 basis.
Because stablecoin stress often begins this way. A small deviation appears. Then questions follow. Sometimes nothing more happens. Sometimes it signals something bigger.
Reserves and infrastructure remained secure
The company confirmed USD1 reserves are held by institutional custody provider BitGo and backed by short-term U.S. Treasury assets. This custody structure provides an additional layer of institutional-grade security.
WLFI also stated that no smart contracts were affected, all funds remained secure, and the infrastructure operated exactly as designed. No technical breach was detected.
At least based on current findings.
This detail matters. In most stablecoin crises, reserve integrity becomes the central concern. In this case, reserves remained intact.
Short position claims and market reaction
WLFI alleged that attackers opened large short positions to profit from panic. Such strategies rely on weakening confidence and triggering downward price pressure.
Trump backed WLFI’s token declined about 3% during the event. However, the sell-off did not evolve into a broader collapse. The price reaction remained contained.
This suggests the attack did not fully achieve its intended impact. Or at least, not yet.
Eric Trump detail drew attention
Market observer Wu Blockchain reported that WLFI co-founder Eric Trump deleted several WLFI-related posts from his X account before the price decline. No direct connection to the attack has been confirmed. Still, the timing drew attention.
These details do not always move markets immediately. But they tend to stay in memory.
USD1 returned near its peg
Latest data shows USD1 trading close to its $1 level again. WLFI reiterated that the stablecoin remains fully backed and operational.
USD1 is also listed and traded on Binance, the world’s largest cryptocurrency exchange, providing significant liquidity support.
The incident highlights how crypto attacks increasingly extend beyond technical exploits. Social access, narrative manipulation, and financial positioning now operate together.
For now, USD1’s peg remains intact. What happens next may depend less on price charts and more on confidence.
Because in the end, trust moves markets.
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