- World Liberty Financial, a Trump family crypto project, reported a “coordinated attack” that briefly depegged its USD1 stablecoin, leading to massive withdrawals.
- Investors pulled over $270 million from the stablecoin after the incident, according to DefiLlama data, and the project’s WLFI token lost more than 8% of its value.
- Posts mentioning the project vanished from co-founder Eric Trump’s X account during the turmoil, fueling uncertainty about the cause.
- The project is also facing allegations of insider dealing, including a reported $500 million secret stake sale to an Abu Dhabi royal which a spokesperson confirmed.
The Trump family’s World Liberty Financial crypto project is reeling following a Monday “coordinated attack” that temporarily knocked its $4.7 billion USD1 stablecoin below its intended $1.00 value. This plunge triggered panic selling among holders and caused posts about the project to disappear from co-founder Eric Trump’s X account.
World Liberty Financial asserted on X that “attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive WLFI shorts to profit from the manufactured chaos.” The project claimed the attack ultimately failed, noting all funds were safe and fully backed in a separate social media post.
However, the brief de-pegging severely damaged investor confidence. Consequently, over $270 million has been withdrawn from USD1 since the incident began.
Meanwhile, the project’s governance token, WLFI, shed more than 8% of its value. This represents a sharp reversal for a project that recently hosted top crypto and financial figures at its Mar-a-Lago World Liberty Forum.
The alleged attack compounds existing scrutiny around World Liberty Financial. For instance, a Wall Street Journal investigation alleged a secret $500 million stake sale to Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan. A project spokesperson confirmed this transaction to multiple news outlets.
Further allegations, from a 60 Minutes report tied to a Binance investment deal, suggest the USD1 stablecoin was used for political favors. The White House has repeatedly refuted all claims of insider dealing surrounding the project.
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