World Liberty Financial (WLFI), the Trump-backed crypto project behind the USD1 stablecoin, has accused critics of orchestrating a “coordinated attack” after its token briefly came under pressure amid speculation of a looming insider trading investigation.
Although no company was named, the crypto community quickly began speculating that WLFI could be the subject of the probe.
USD1 Briefly Loses Peg as Rumors Spread
Following the viral post, WLFI’s native token dipped to around $0.1088, while the USD1 stablecoin briefly fell below its $1 peg. The move triggered concern among traders, especially as social media speculation intensified.
The timing coincided with reports that Eric Trump had deleted a WLFI-related post on X, fueling further assumptions that the upcoming investigation might involve the Trump-linked project.
Despite the turbulence, USD1 has since recovered its peg, and WLFI’s token price stabilized.
A coordinated attack was launched against USD1 this morning. Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive $WLFI shorts to profit from the manufactured chaos.
— WLFI (@worldlibertyfi) February 23, 2026
It didn’t work.
Thanks to USD1’s sound mint-and-redeem mechanism…
A coordinated attack was launched against USD1 this morning. Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive $WLFI shorts to profit from the manufactured chaos.
— WLFI (@worldlibertyfi) February 23, 2026
It didn’t work.
Thanks to USD1’s sound mint-and-redeem mechanism…
WLFI Alleges Hacked Accounts and Paid Influencers
The project claimed that attackers had hacked several WLFI co-founder accounts, paid influencers to spread fear, uncertainty, and doubt (FUD), and opened large short positions on WLFI to profit from the ensuing volatility.
According to WLFI, the effort “didn’t work,” emphasizing that USD1 remains backed 1:1 and supported by a functioning mint-and-redeem mechanism.
However, the project did not present on-chain evidence supporting the hacking allegations or the claim of coordinated short selling. It also did not identify the influencers allegedly involved in spreading negative narratives.
Eric Trump Promotes Maldives Tokenization Project
Amid the speculation, Eric Trump shifted attention to WLFI’s broader ambitions, posting about a new tokenized luxury resort development in the Maldives.
The project reportedly plans to build 100 beach and overwater villas, tokenized at the development level.
Earlier this month, Apex Group, which oversees approximately $3.5 trillion in assets, agreed to pilot the tokenization initiative.
Still, observers noted that Eric Trump’s deletion of an earlier WLFI-related message added fuel to speculation, even as the company insisted there was no wrongdoing.
Political Scrutiny and Ongoing Questions
USD1 currently has roughly 4.7 billion tokens in circulation and has returned to its $1 peg following the brief dip. Despite weathering the episode, WLFI’s connections to President Donald Trump continue to attract political scrutiny.
Recently, Senators Elizabeth Warren and Andy Kim called for Treasury Secretary Bessent to review a reported $500 million investment in the Trump-linked crypto venture by a UAE government-affiliated entity.
As for ZachXBT’s promised investigation, the target remains unidentified. The only clue is that it involves “one of crypto’s most profitable businesses.”
Until the report is published, speculation is likely to persist. For now, WLFI maintains that the volatility surrounding USD1 was the result of a deliberate disinformation campaign rather than evidence of misconduct.
Whether the upcoming investigation confirms or dispels those suspicions remains to be seen.
