Targeted Attack Hits Trump Linked Stablecoin USD1 as Price Dips Below Peg

A stablecoin backed by former U.S. President Donald Trump and his family briefly slipped from its dollar peg this week, raising fresh questions about the resilience of politically connected digital currencies.

According to a Reuters report by Lawrence Delevingne, USD1, the flagship token of World Liberty Financial, dipped to about $0.994 on Monday, before rebounding to its normal trading range.

The company said the volatility was triggered by what it described as a coordinated attack, which its internal teams were able to repel.

World Liberty Financial Says Systems Held Firm

In a statement shared with Reuters, World Liberty Financial said its engineering and security teams acted quickly to counter the attempted disruption.

The firm added on X that the personal X accounts of some of its co founders were accessed without authorization, but stressed that the underlying blockchain infrastructure remained uncompromised.

“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 said in its public post.

A Trump Family Venture Under Scrutiny

Launched in 2024, World Liberty Financial is co founded by Donald Trump and his three sons. The company markets USD1 as a fully backed digital dollar alternative aimed at everyday users and institutional participants.

Like other stablecoins, USD1 is designed to maintain a one to one value with the U.S. dollar, supported by reserves held in cash and short term securities. Although minor deviations are common, sudden downward moves are closely monitored due to broader concerns around liquidity, risk, and market confidence.

Following the incident, USD1 stabilized at $0.9994, in line with its typical historical trading range. It currently ranks as the fifth largest stablecoin by market capitalization, according to data from CoinGecko.