World Liberty Financial's USD1 stablecoin has returned to its dollar peg after what it described as a coordinated attempt to cause disruption. The firm said several accounts belonging to co-founders were hacked and that online influencers were paid to spread doubt while traders opened short positions against the WLFI token. According to the company, the attempt failed due to the structure of the stablecoin and ongoing market demand.
Trading data showed that USD1 dropped to $0.9934 during the event. The stablecoin moved back toward $1 after trading resumed under normal conditions. WLFI stated that the mint-and-redeem model supported price stability and that reserves remain fully backed on a one-to-one basis.
WLFI Addresses Attack Claims and Reinforces Stablecoin Structure
In an online post, WLFI said the attack was planned to generate volatility that could benefit traders holding short positions. The company said that its teams restored account access and verified that reserves were unaffected. It also encouraged users to rely only on official channels for accurate updates.
Co-founder Zach Witkoff said the stablecoin maintains full backing and can be verified through available data. He said the project aims to set a new standard for stablecoin transparency and reserve management. WLFI also pointed to reserve compliance with the GENIUS Act framework.
WLFI said the event did not affect the long-term structure of USD1 and that the stablecoin continued to process redemptions and issuances. The company reported stable activity during the hours following the volatility.
Tokenized Maldives Resort Project Moves Forward
The reported attack occurred as WLFI continues to promote its tokenized real estate plans. The company announced that it will develop a luxury resort in the Maldives containing beach and overwater villas. The project uses a tokenization model that issues tokens during the development stage rather than after completion.
WLFI said that this structure gives investors access to the development phase of the project. The company said this phase usually generates higher returns than standard real estate exposures. The tokens are expected to offer fixed yield and loan revenue streams.
Eric Trump posted support for the project and said the aim is to connect physical assets with digital assets through the WLFI platform. He said the Maldives development marks a step toward expanded real estate tokenization.
WLFI stated that early interest has come from users participating in the USD1 liquidity program on Binance. The exchange has extended a campaign that distributes WLFI tokens to users holding USD1. A total of 235 million WLFI tokens are scheduled for distribution from February 20 to March 20.
Political Concerns Emerge in Washington
As WLFI expands its public presence, several lawmakers have called for an inquiry into possible conflicts of interest linked to the project. A group of House Democrats led by Rep. Gregory Meeks sent a letter to Treasury Secretary Scott Bessent.
The letter requested a review of the financial ties surrounding WLFI and an investment from a UAE-based royal family member.
Lawmakers said the size of the stake and the involvement of public figures raise questions about potential national security concerns. They asked the Treasury Department to assess whether additional oversight is needed. The inquiry request follows WLFI’s growing role in the stablecoin and tokenization sectors.
