Trump-Backed Stablecoin USD1 Briefly Depegs After Alleged Cyberattack, Quickly Recovers

The Trump family-backed stablecoin USD1 briefly slipped below its $1 peg on Monday, falling to approximately $0.994 before swiftly recovering, according to market data. The temporary price dip raised concerns among crypto investors, though the token quickly stabilized and was last trading at $0.9994—well within its typical historical range.

USD1 is issued by World Liberty Financial (WLFI), a crypto venture co-founded in 2024 by President Donald Trump, his three sons, and a group of business partners. In a statement to Reuters, a WLFI spokesperson confirmed that the company’s engineering and security teams had “successfully repelled a coordinated attack” during the incident.

World Liberty Financial also disclosed on X (formerly Twitter) that the social media accounts of several co-founders were accessed without authorization. However, the company emphasized that the core infrastructure behind WLFI and USD1 remained secure. “Zero smart contracts were affected. All USD1 funds remain completely safe, secure, and fully backed. Our infrastructure and team operated exactly as designed,” the company stated.

Importantly, WLFI clarified that there was no breach of the digital contracts or crypto wallets supporting USD1. This distinction is critical in the stablecoin market, where security vulnerabilities can trigger sharp sell-offs and long-term reputational damage.

Like other major stablecoins, USD1 is backed by U.S. dollar reserves and cash-equivalent securities to maintain its $1 benchmark price. While minor fluctuations are common in the cryptocurrency market, sudden dips—even small ones—are closely monitored by traders and regulators alike.

According to CoinGecko data, USD1 currently ranks as the fifth-largest stablecoin by market capitalization, reinforcing its growing role in the broader digital asset ecosystem.