USD1 Stablecoin Faces Coordinated Attack; WLFI Token Declines
World Liberty Financial's USD1 stablecoin slipped from its $1 peg on Monday amid what the project's developers described as a "coordinated attack" against the protocol. USD1 fell as low as $0.994 (0.6% below peg) before recovering to around $0.998.
The project claims hackers compromised cofounder accounts, paid influencers to spread fear, and opened short positions on WLFI in an attempt to trigger panic and profit from volatility. The team says no funds were compromised and the peg was quickly restored.
Token Performance and Market Impact
WLFI token was trading at $0.1084 at press time, down 4.8% over the past 24 hours, marking its lowest intraday level in recent sessions. WLFI is still up 7.8% over the past week, but remains down 38% over the past month.
WLFI recorded $192 million in 24-hour trading volume, up 27% from the previous day. The $0.10 level is now critical for short-term price direction.
Institutional Partnerships and Real-World Asset Expansion
World Liberty Financial is tapping real-world asset specialist Securitize to help tokenize loan interests tied to the Trump International Hotel and Resort in the Maldives. Rather than direct equity in the properties, investors will be able to buy tokens tied to loan revenue.
Eligible accredited investors will receive a fixed yield and payments linked to the loan's performance. The sale will take place under U.S. private placement rules, with restrictions on resale.
Apex Group Partnership
WLFI is piloting its USD1 stablecoin as a settlement rail for tokenized funds with Apex Group. This partnership aims to integrate blockchain-based payments into traditional fund administration systems.
Recent Regulatory and Political Developments
Democrats Press Treasury Over Bank License — Lawmakers escalate scrutiny over the firm's charter application, citing national security concerns. Representative Ro Khanna (D-CA) had launched a formal investigation on February 5, 2026, raising concerns that the Tahnoun-linked investment may have influenced U.S. export-control policy related to AI chips, and requesting documentation from WLFI CEO Zach Witkoff by March 1.
Exchange and Ecosystem Developments
Binance Launches 235M WLFI Airdrop Campaign (21 February 2026) – Major exchange campaign aims to boost USD1 stablecoin adoption and user engagement.