WLFI Reports Coordinated Attack on Stablecoin and Native Token

World Liberty Financial (WLFI), a decentralized finance project linked to Donald Trump's family, has reported a coordinated attack on its stablecoin and native token. According to WLFI, the attackers attempted to break the $1 peg of USD1 while simultaneously driving down the price of $WLFI.

The incident occurred on February 23, 2026, and had an immediate but short-lived market impact. USD1 briefly dipped below its peg, falling to around $0.994 before recovering back to $1 within hours. The $WLFI token saw a steeper reaction, dropping roughly 7% to 8% before rebounding toward the $0.113 range as conditions stabilized.

WLFI leadership stressed that the core protocol infrastructure was never compromised. No smart contracts or treasury wallets were breached, and the disruption was limited to social media accounts and market sentiment. The project credited USD1's recovery to its mint-and-redeem structure and claimed 1:1 backing with U.S. dollars and short-term Treasuries held by custodian BitGo.