WLFI USD1 stablecoin briefly depegs, peg restored
6.8 Stablecoins WLFI’s USD1 stablecoin briefly lost its peg due to a coordinated attack but quickly recovered. WLFI assured users of the stablecoin’s resilience and security.
World Liberty Financial (WLFI) reported that its USD1 stablecoin briefly lost its 1:1 peg to the US dollar, with values fluctuating between $0.97 and $1.03 for less than an hour before stabilizing. The company attributed the incident to a coordinated attack involving compromised cofounder accounts, paid influencers spreading disinformation, and large short positions seeking to profit from the volatility. Despite the disruption, WLFI stated that its mint-and-redeem mechanism and full 1:1 backing enabled USD1 to quickly regain its peg. The event prompted a technical investigation and renewed discussions about stablecoin resilience. WLFI urged users to rely on official channels for updates and assured that user funds remained secure. During the incident, WLFI’s native token dropped 7%, and trading volumes spiked on decentralized exchanges. Following the event, USD1 continued to trade near its intended value.
