On February 23, the Trump-backed decentralized finance (DeFi) protocol World Liberty Monetary reported that hackers had infiltrated its ecosystem, namely focusing on its main stablecoin, USD1.
The coordinated attack comprised a 3-pronged capability designed to depeg USD1 from the dollar, and income from the identical.
The utilization of co-founders’ hacked social accounts, hackers posted falsified records to operate fear, uncertainty, and doubt (FUD) in the platform’s ecosystem. Thereafter, the attackers reportedly paid off crypto influencers to amplify records of the attack, making it seem worse than it surely used to be. Attackers then proceed to quick-promote WLFI tokens in the hopes of making the many of the man made chaos.
A coordinated attack used to be launched in opposition to USD1 this morning. Attackers hacked several WLFI cofounder accounts, paid influencers to unfold FUD, and opened huge $WLFI shorts to income from the manufactured chaos.
It didn’t work.
Thanks to USD1’s sound mint-and-redeem mechanism…
— WLFI (@worldlibertyfi) February 23, 2026
WLFI stablecoin recovers quickly after FUD hit
World Liberty Monetary explained that the attack failed “ensuing from UDS1’s sound mint-and-redeem mechanism and total 1:1 backing.” The stablecoin experienced a handy e-book a rough lived 0.6% deviation to $0.994 sooner than swiftly recovering discontinuance to the dollar. At press time, the stablecoin used to be trading at $0.9989, with an overall descend of 0.28% in the closing 24h. WLFI token, ranked 29th by market cap, used to be trading at $0.1115 following a 0.7% 24h dip.
Source: CoinMarketCap
The DeFi platform is one in every of many who rely on a completely-reserved and fiat-backed mint-and-redeem stablecoin mechanism. Evidence of right here is display in monthly reserve attestations, reserve composition studies, institutional partnerships, and its white paper dubbed the “Gold Paper”.
WLFI attack history and traits
Notably, right here is the fourth attack geared in opposition to the World Liberty Monetary platform in the closing two years. In July 2024, Dough Finance, a previous mission connected to the DeFi platform, misplaced $2.5 million to hackers. And in September 2025, “sweeper bots” exploited a vulnerability connected to Ethereum’s EIP-7702 crimson meat up, draining wallets of millions in WLFI tokens. Two months later, a phishing campaign compromised particular person wallets, and the platform used to be forced to burn and re-allocate $22 million rate of stolen tokens.In additional progressive traits, World Liberty Monetary launched the World Liberty Discussion board, which targets to scheme discontinuance part in shaping the cryptocurrency regulatory playground.
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