World Liberty Financial (WLFI), a decentralised finance project linked to the family of U.S. President Donald Trump, officially announced that it faced a coordinated attack targeting its USD1 stablecoin.
The attack involved multiple methods. WLFI said several co-founders’ social media X accounts were hacked, negative sentiment was spread and large-scale short selling of World Liberty Financial took place at the same time to exploit market volatility.
Eric Trump (Eric Trump), the second son of Donald Trump and a co-founder of World Liberty Financial, deleted some related posts around the time of the incident. The World Liberty Financial token fell more than 8 percent at one point. The USD1 stablecoin fell as low as $0.9802, briefly breaking its one-to-one peg with the dollar.
World Liberty Financial said its smart contracts and wallets were not hacked. The foundation said the incident was limited to unauthorised access to co-founders’ X accounts and emphasised there was no impact on the protocol’s infrastructure.
Chi-gyu Hwang
delight@d-today.co.kr