USD1, a crypto stablecoin issued by World Liberty Financial and associated with the Trump family, briefly traded below its $1 target on Monday, touching about $0.994 before recovering toward parity. The token was last quoted at $0.9994, which the issuer said was within its historical trading range.
A spokesman for World Liberty Financial said its engineering and security teams had "successfully repelled a coordinated attack." The firm, which it has said was co-founded in 2024 by President Donald Trump, his three sons and a group of partners, also reported that the X accounts of its co-founders were accessed without authorization. The company did not identify which accounts were affected.
World Liberty emphasized that the underlying digital infrastructure for WLFI and USD1 was not breached. In a post on X.com, the company stated:
"Zero smart contracts were affected. All USD1 funds remain completely safe, secure, and fully backed. Our infrastructure and team operated exactly as designed."
The statement drew a clear distinction between unauthorized access to social media accounts and any intrusion into the blockchain-based contracts and wallets that govern USD1. According to the post, there was no hack of the digital contracts and wallets behind WLFI or USD1.
Like other stablecoins, USD1 is backed by reserves of U.S. dollars and cash-like securities to keep its market price close to the $1 benchmark. Small deviations from the peg are typical; however, market participants closely watch abrupt moves even when they are modest in size. USD1 is the fifth largest stablecoin by market capitalization, according to CoinGecko.com.
The episode combined a short-lived market price move with issuer assurances that core smart contracts and custodial structures were intact. World Liberty's account access disclosure highlighted a social-media vector for reputational or operational disturbance, while the company maintained that the token's reserves and contract security were unaffected.
Contextual note: The information presented here is limited to the statements released by World Liberty Financial and publicly observable market prices for USD1. No additional claims or external data are included beyond those statements.