World Liberty Financial (CRYPTO: WLFI) claimed it repelled a “coordinated attack” involving hacked cofounder accounts, paid influencers spreading disinformation, and massive shorts as USD1 briefly slipped to $0.98 before recovering.
The Attack Timeline
At approximately 8:15 AM Eastern Time Monday, USD1 fell from $0.9990 to $0.9802 on Binance—a roughly 2% drop. Other price aggregators like CoinGecko showed a smaller slip to $0.994.
Within 30 minutes, the stablecoin recovered to full parity with USDT (CRYPTO: USDT) and has remained there since.
World Liberty blamed a coordinated attack across multiple vectors.
According to the company, attackers hacked several WLFI cofounder accounts, paid influencers to spread negative information, and opened massive WLFI shorts to profit from the manufactured chaos.
Eric Trump deleted several WLFI posts on X prior to the price movement, according to market observer Wu Blockchain.
WLFI dropped roughly 7% from $0.117 to $0.109 around the same time USD1 slipped. However, the token has since partially recovered to $0.113.
The Recovery Defense
World Liberty emphasized USD1’s “sound mint-and-redeem mechanism and full 1:1 backing” in repelling the attack.
The stablecoin is backed by reserves held in custody by BitGo, including short-term U.S. Treasuries.
World Liberty said hackers and paid-disinformation campaigns attempted to undermine trust in WLFI, but their infrastructure and systems operated as they should.
However, the mechanics of the alleged attack remain unclear.
The company did not immediately identify any alleged hackers when asked. Additionally, stablecoin experts note that 0.01%-0.03% price fluctuations happen nearly constantly due to trading spreads, liquidity differences, and arbitrage lags.
A brief slip to $0.98 would not typically be considered a depeg unless sustained.
The Technical Breakdown
WLFI is testing critical $0.10-$0.105 support after breaking below a consolidation range between $0.13-$0.18.
The Supertrend at $0.13378 remains firmly bearish.
The token broke below the $0.12-$0.15 consolidation zone with recent decline pushing toward $0.10 before the current bounce.
This violation of support suggests the path of least resistance shifted lower.
Critical support sits at $0.10-$0.105. Breaking below triggers cascading toward $0.095, then potentially $0.085-$0.09.
For recovery, WLFI needs to reclaim $0.125, break above the Supertrend at $0.13378, and re-enter the consolidation range above $0.13.
Image: Shutterstock
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