USD1, the World Liberty Financial stablecoin, briefly traded below its $1 peg, dipping to around $0.994 amid a reported coordinated attack, before recovering toward $1, according to CoinGecko data on February 23, 2026.

WLFI’s own token, WLFI, fell about 7% during the incident, while USD1 briefly touched approximately $0.994 before rebounding to just under $1.

The Block and WLFI’s X posts attributed a coordinated attack to the drop, citing compromised cofounder accounts, paid influencers spreading FUD, and large WLFI short positions aimed at profiting from the instability.

CZ Zhao stated he has no business relationship with the Trump family and indicated he does not plan to return to lead Binance.

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World Liberty said USD1 funds were not affected, and the system’s infrastructure and team operated as designed during the incident.

Bloomberg and The Wall Street Journal noted Binance’s role in creating USD1 and its involvement in a $2 billion Binance-related investment, raising questions about WLFI’s ties to the president’s family.

X accounts of WLFI co-founders were reportedly accessed without authorization, though WLFI did not specify which individuals.

Context notes indicate ongoing fundraising for USD1 and related market activity, including references to Procap Financial’s buyback story for broader context.

WLTC Holdings had sought to establish a national trust bank to expand USD1 operations, with World Liberty involved in crypto lending and aiming to bring USD1 onshore.

The incident followed a World Liberty crypto forum at Trump’s Mar-a-Lago estate, featuring figures from government, crypto, and banking, including a former Binance CEO who was pardoned in 2025.

WLFI described the attack as involving hacked cofounder accounts, paid influencers spreading fear, and large WLFI short positions to provoke panic and profit, with the peg maintained by mint-and-redeem mechanics.