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.

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.

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.

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.

TLDR

• Vitalik Buterin swapped more than 3,100 ETH for stablecoins through CoW Swap in recent days.
• On-chain data shows the transactions totaled over $6.1 million at current market prices.
• His on-chain Ethereum holdings now stand at more than 224,000 ETH valued at about $426 million.
• Buterin previously moved over $29 million in ETH, with at least $2.3 million funding Ethereum Foundation initiatives.
• Ethereum’s price fell below $1,900 and dropped over 36% in the past month.

Vitalik Buterin has continued selling Ethereum (ETH) through decentralized exchanges in recent days. On-chain data shows he swapped thousands of ETH for stablecoins. The latest transactions come as Ethereum’s price trades below $1,900.

Vitalik Buterin Executes Fresh ETH Sales Through CoW Swap

Arkham Intelligence labeled wallets tied to Vitalik Buterin recorded recent swaps on CoW Swap. The data shows he exchanged more than 3,100 ETH for stablecoins over several days.

Those transactions equal more than $6.1 million at current prices. After the swaps, his on-chain holdings stand at over 224,000 ETH.

The remaining balance carries a value of about $426 million. The transfers follow a pattern of routine sales observed in recent weeks.

Earlier, Buterin moved over $29 million worth of Ethereum. At least $2.3 million from that amount supported Ethereum Foundation initiatives.

He previously outlined plans to sell around $44.7 million in ETH. He linked those sales to a period of “mild austerity” for the Foundation.

Buterin said the approach would “ensure the Ethereum Foundation’s own ability to sustain in the long term.” He added it would protect Ethereum’s “core mission and goals.”

Ethereum Price Drops Below $1,900 as Market Weakens

Ethereum’s price has declined during the broader crypto market downturn. ETH has fallen about 4% over the past 24 hours.

The asset recently traded at $1,872 on major exchanges. It earlier touched a two-week low of $1,855 on Sunday.

Over the past month, Ethereum has dropped more than 36%. The token also remains over 62% below its August all-time high of $4,946.

Buterin has also addressed Ethereum’s long-term roadmap in public statements. He said the Ethereum mainnet “needed a new plan” regarding layer-2 scaling networks.

He discussed the relationship between the base layer and scaling chains. He suggested adjustments to strengthen coordination and efficiency.

Last week, Buterin supported a new censorship-resistant upgrade for the network. He said Ethereum was “going hard” on its technical direction.

He also referred to reviving a “cyberphunk” ethos within the ecosystem. These remarks came as developers continued work on protocol upgrades.

The recent ETH sales occurred during this period of roadmap discussion. On-chain data continues to track movements from wallets linked to Vitalik Buterin.

Australian authorities have charged two men following an investigation into an alleged $5 million cryptocurrency investment scam that targeted vulnerable victims across the country.

Australia steps up crypto fraud crackdown

The New South Wales Police Force said detectives from its Cybercrime Squad launched Strike Force Resaca to investigate reports of fraudulent online investment activity. Search warrants were executed at properties in Strathfield and Cammeray, as well as a business premises in Burwood, all located in Sydney.

Police allege the scheme lured victims, many described as elderly or financially vulnerable, through social media advertisements and unsolicited messages promoting cryptocurrency and other high-return investment opportunities.

Victims were reportedly directed to deposit funds into what they believed was a legitimate trading platform known as “NEXOpayment.” Australian authorities claim the money was instead funnelled through multiple cryptocurrency wallets and exchanges in an attempt to disguise the movement of funds.

A 42-year-old man was arrested at a Strathfield residence and taken to Auburn Police Station, where he was charged with recklessly dealing with proceeds of crime valued above $5,000. He was granted conditional bail and is scheduled to appear at Burwood Local Court on March 17, 2026.

A 36-year-old man was also arrested at a Cammeray property and later released pending further inquiries.

Police say investigations remain ongoing and are urging anyone who suspects they may have been targeted by an investment scam to report the matter to authorities. Officials reiterated that investment scams remain one of the highest-loss cybercrime categories in Australia.

Key takeaways:

• Historical data shows Bitcoin often outperforms during trade wars and liquidity injections despite initial macro fear.

• Resilient mining activity and a shift to net long positions on CME futures suggest professional traders are buying the dip.

Bitcoin (BTC) traders are becoming increasingly anxious after 18 days of trading below the $75,000 level. Concerns intensified following a retest of $64,200 on Monday, triggered by a retreat in global stock markets. US President Donald Trump’s decision to increase baseline import tariffs to 15% has heightened uncertainty, leading investors to adopt a more risk-averse stance.

While these events appear negative at first glance, Bitcoin has a history of outperforming during bearish macroeconomic shifts. More importantly, risk perception is gradually improving; Bitcoin miners have shown resilience, and professional traders used the recent dip to add exposure.

On April 2, 2025, the Trump administration signed an executive order imposing sweeping “reciprocal tariffs” on nearly every trading partner. The situation escalated on April 9, 2025, as additional tariffs were applied to 75 countries, including a 34% rate for China. This move coincided with Bitcoin hitting a five-month low at $74,600, which was followed by a 38% rally over the next month.

Traders choose cash over Bitcoin during periods of uncertainty

The natural instinct for traders during periods of uncertainty is to seek shelter in cash and government bonds. Despite its unique benefits, Bitcoin is not yet considered a safe haven by most investors. However, once the market realizes that governments may be forced to inject liquidity to stimulate the economy, Bitcoin tends to outperform.

The US Federal Reserve (Fed) lends cash against Treasury collateral to maintain smooth funding markets and settlements. This measure should not be viewed as a direct liquidity injection, as it reflects temporary balance sheet conditions. Nevertheless, peak levels in this indicator—such as the $100 billion seen on March 16, 2020—have historically marked reversals in Bitcoin’s price trend.

In fact, the COVID-19 crash of 2020 marked the beginning of a multi-month rally, taking Bitcoin to $42,000 from $4,400. Consequently, those who claimed the cryptocurrency failed as a long-term investment while it traded 55% below its prior $19,900 all-time high between May and July 2020 were proven wrong. A similar pattern could unfold in 2026 if liquidity conditions deteriorate further.

Nvidia (NVDA US) is scheduled to report quarterly earnings after the US stock market closes on Wednesday. Results from the chipmaker will likely set the investor mood, particularly as concerns regarding rising tech sector debt mount. Notably, shares of Coreweave (CRWV US) and Oracle (ORCL US) have already plunged over 50% from their previous all-time highs.

While conditions for companies supporting the artificial intelligence sector weaken, the exodus of investment from Bitcoin miners represents less of a risk now that the network hashrate has fully recovered from a 25% dip in January. More importantly, ASIC miners released in 2024 and early 2025 remain profitable even at an electricity cost of $0.07 per kilowatt-hour.

Related: Bitcoin miner MARA buys majority stake in AI data center firm Exaion

The de-escalation of “miner death spiral” fears may have helped instill bullishness among professional fund managers. Large speculators, including hedge funds, have shifted from a net short to a net long position on CME Bitcoin futures, according to a CFTC report published last week. Analyst Tom McClellan noted that two similar historical shifts preceded significant Bitcoin price bottoms.

While no single reversal indicator can confirm if the $60,200 level on Feb. 6 marked the cycle low, the combination of liquidity concerns, fears of excessive AI sector valuations, and resilience in the mining sector could push Bitcoin’s price back toward $75,000 in the near term.