USD1 Stablecoin Depegs Amid Alleged Coordinated Attack
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. The token fell to as low as $0.994 during the day, some 0.6% from its intended $1 anchor.
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. Developers credited USD1's dollar-for-token redemption feature with helping maintain confidence and prevent a deeper or prolonged depeg, underscoring how direct convertibility remains critical to stablecoin resilience.
Token Price Movement and Market Activity
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.
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, with investors able to buy tokens tied to loan revenue. Eligible accredited investors will receive a fixed yield and payments linked to the loan's performance, with the sale taking place under U.S. private placement rules, with restrictions on resale.
WLFI also announced a separate partnership with Apex Group to pilot its USD1 stablecoin for settlements in tokenized fund operations, which will help integrate blockchain-based payments into traditional fund administration.
Regulatory Scrutiny and Political Developments
Representative Ro Khanna (D-CA) 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.
Democrats are escalating scrutiny over the firm's charter application, citing national security concerns.
Exchange Integration and Airdrop Campaign
Binance launched a 235M WLFI airdrop campaign on February 21, 2026, with the major exchange campaign aiming to boost USD1 stablecoin adoption and user engagement.