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World Liberty Financial Claims Hackers and Paid FUD Targeted USD1 in Orchestrated Market Attack

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TLDR:

  • World Liberty Financial alleged that several WLFI co-founder accounts were hacked during the Tuesday attack.
  • Paid influencers reportedly spread fear and uncertainty to trigger a short-term sell-off in USD1 markets.
  • USD1 briefly depegged to 0.9802 USDT before recovering to its intended $1.00 par value quickly.
  • Eric Trump deleted WLFI-related posts on X, causing the token to briefly fall more than 8% in value.

World Liberty Financial reported a coordinated attack against its USD1 stablecoin on Monday morning. The project alleged that several co-founder accounts were hacked, influencers were paid to spread fear, uncertainty, and doubt, and large short positions were opened to profit from the resulting volatility.

USD1 briefly dipped to 0.9802 USDT before recovering to its $1.00 peg. WLFI credited its full 1:1 asset backing and mint-and-redeem mechanism for the quick recovery.

World Liberty Financial Alleges a Three-Part Coordinated Campaign

World Liberty Financial reported that the attack followed a structured and deliberate pattern. Hackers gained unauthorized access to several WLFI co-founder accounts on social media. Those accounts were then used to push misleading information to a broad audience.

Shortly after, paid influencers reportedly amplified the negative messaging across multiple platforms. The manufactured narrative was designed to erode market confidence in USD1 quickly.

Together, the hacked accounts and coordinated posts created enough panic to trigger a short-term sell-off.

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While the social media campaign unfolded, attackers also opened massive short positions on WLFI tokens. This move was timed to profit from the price drop caused by the artificial fear in the market. The strategy reflected a pattern that has been observed in previous coordinated crypto attacks.

World Liberty Financial responded publicly through its verified X account, stating: “A coordinated attack was launched against USD1 this morning. Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive shorts to profit from the manufactured chaos.” The project urged users to rely only on verified channels going forward.

Eric Trump’s Deleted Posts Contributed to the Brief Market Decline

The reported attack was further compounded when Eric Trump, a WLFI co-founder, deleted several project-related posts on X.

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The timing of the deletions coincided with the broader attack already unfolding across the market. Observers and traders quickly flagged the removed content as a point of concern.

Following the deletions, WLFI token prices fell more than 8% within a short window. The drop showed how sensitive crypto markets remain to social media activity, particularly during moments of uncertainty. Even minor shifts in online presence can trigger outsized reactions from market participants.

USD1 also felt the pressure during this period, trading temporarily at 0.9802 USDT against its intended $1.00 peg.

While the deviation was short-lived, any movement away from the peg in a stablecoin draws immediate scrutiny. The price recovered to par shortly after the situation stabilized.

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World Liberty Financial maintained that the attack caused no lasting damage to USD1 or its underlying structure.

The team reaffirmed its long-term commitment to the project and noted that the stablecoin’s backing held firm throughout the incident. The full scope of the attack is still being investigated by the WLFI team.

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Crypto World

Robinhood users rotate beyond BTC, ETH as dip-buying grows

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Robinhood chain testnet records 4M transactions in first week, CEO says

BTC is trading around $68,000, slightly up on the day but down over the week, and Robinhood’s crypto head says their users are using this environment to buy dips and diversify beyond just BTC and ETH.

Summary

  • BTC trades near recent lows after multi-week decline amid persistent ETF outflows and extreme fear readings.
  • Robinhood users increasingly rotate from just BTC, ETH into a broader basket of tokens during the downturn.
  • Staking demand for ETH and SOL on Robinhood remains strong since its December launch, signaling active on-chain use, not passive holding.

Cryptocurrency investors are diversifying their holdings beyond Bitcoin and Ethereum during the current market decline, according to a Robinhood executive.

Johann Kerbrat, head of crypto at Robinhood, stated in a recent interview that many platform users view the ongoing market downturn as an opportunity to purchase digital assets at lower prices. However, trading activity has expanded beyond the largest cryptocurrencies, Kerbrat said.

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“Customers see the current market as a buying opportunity. However, they are expanding their transactions beyond the two or three most popular cryptocurrencies to include a wider range of assets,” Kerbrat stated.

The executive reported that clients are actively using their tokens rather than simply holding them on the platform. Interest in staking has remained strong since Robinhood launched the feature in December, according to Kerbrat.

The shift in investor behavior comes as overall market sentiment remains at extreme levels of fear, according to market indicators. U.S. spot Bitcoin exchange-traded funds have experienced net outflows for several weeks, data shows.

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Despite the negative market conditions, interest in decentralized finance use cases is increasing, Kerbrat noted.

Bitcoin and altcoin prices have continued to decline in recent weeks, extending losses across the cryptocurrency market.

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Stablecore Taps Jack Henry to Expand Bank Stablecoin Access

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Stablecore Taps Jack Henry to Expand Bank Stablecoin Access

Stablecore, a digital asset infrastructure company, has joined the Jack Henry Fintech Integration Network, enabling banks and credit unions on the platform to offer stablecoin and tokenized asset services through their existing systems.

Jack Henry supplies core processing and digital banking technology to approximately 1,670 banks and credit unions in the United States. Many of those institutions also rely on its Banno Digital Platform, which powers online and mobile banking services for more than 1,000 financial institutions. 

On Monday, Stablecore said the integration will connect blockchain-based products to traditional core banking infrastructure. 

Participating institutions could roll out stablecoin accounts with 24/7 payment capabilities, crypto on- and off-ramps for assets such as Bitcoin (BTC), digital asset–backed lending, tokenized deposits and staking features where permitted.

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Embedding these services within existing banking apps would reduce reliance on standalone wallets or external crypto platforms. It also reflects a broader shift toward incorporating blockchain-based assets into regulated financial channels as demand for compliant, onchain cash-management tools continues to grow.

Related: Wall Street’s crypto debate is over as banks go all-in on BTC, stablecoins, tokenized cash

Stablecoin infrastructure race accelerates

As Cointelegraph reported, Stablecore raised $20 million last year to help smaller banks and credit unions integrate digital asset services, especially stablecoins, following the passage of the landmark US GENIUS Act, which established a federal framework for payment stablecoins.

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Stablecore is part of a growing cohort of companies building stablecoin infrastructure to expand access to digital dollars. Proponents argue stablecoins can reduce settlement times, cut cross-border payment costs and provide uninterrupted transfer capabilities compared to traditional banking rails.

Momentum has been building across both fintech and traditional finance.

Last week, payments operations provider Modern Treasury unveiled an integrated payment service that supports stablecoin transactions alongside wire and ACH transfers through a partnership with the Paxos network, signaling greater interoperability between blockchain-based dollars and legacy payment systems.

After a period of explosive growth, stablecoin issuance has plateaued in recent months, hovering just above $300 billion. Source: MacroMicro

Meanwhile, asset management giant Fidelity Investments has introduced the Fidelity Digital Dollar, a stablecoin due to launch this month and designed to facilitate faster and more efficient international settlements.

Large banks are also exploring in-house issuance. Citigroup executives have publicly discussed the possibility of launching a native stablecoin as financial institutions seek to modernize cross-border payments and liquidity management.

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Related: USDCx appears on Aleo as privacy-focused blockchains seek stablecoin access