WLFI's USD1 stablecoin briefly depegged amid coordinated attack
World Liberty Financial reported a coordinated information attack involving the hacking of co-founders' accounts, the spread of panic via influencers, and token shorting on WLFI. This led to a drop of the USD1 stablecoin to around $0.98 and an 8% fall in the WLFI token within minutes.
Within a few hours, the stablecoin almost fully recovered to approximately $0.998. On-chain data showed no significant sell-offs or liquidity withdrawals, indicating the market reaction was driven by the information event rather than actual asset liquidation.
This incident highlights the critical importance of cybersecurity in the crypto space and is likely to prompt increased efforts to protect WLFI’s assets going forward.
