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Trump-Linked USD1 Stablecoin Briefly Depegs, WLFI Under Fire

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Trump-Linked USD1 Stablecoin Briefly Depegs, WLFI Under Fire

The USD1 stablecoin briefly lost its dollar peg on February 23, falling to around $0.994 before quickly recovering. The token now trades close to parity, suggesting the disruption lasted only minutes.

USD1 is issued by World Liberty Financial (WLFI), a DeFi project linked to business entities associated with Donald Trump and his family. The stablecoin currently has a market capitalization near $4.8 billion.

USD1 Price Chart. Source: CoinGecko

World Liberty Financial’s Stablecoin Depeg Triggers Speculation

WLFI responded within hours. The company said attackers compromised several cofounder accounts, spread false information, and opened short positions to profit from panic selling.

Despite the rapid recovery, the incident triggered widespread concern across the crypto community. 

Some users compared the sudden depeg to early warning signs seen before the collapse of algorithmic stablecoins such as TerraUSD in 2022.

However, USD1 differs structurally. WLFI says it maintains full 1:1 reserves, unlike TerraUSD’s algorithmic design, which relied on arbitrage mechanisms rather than direct asset backing.

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Meanwhile, unverified reports circulated on social media claiming that Eric Trump deleted older promotional posts related to USD1 during the volatility. 

Screenshots have circulated online, but no independent confirmation has verified these claims.

Separately, blockchain investigator ZachXBT said he plans to release findings later this week on alleged insider trading involving a major crypto company. 

He did not name the firm. Still, some social media users speculated that WLFI could be involved. There is no evidence supporting this claim at the time of writing.

Stablecoins rely heavily on confidence. Even brief depegs can trigger rapid selling if users fear insolvency or reserve weakness.

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USD1’s quick recovery suggests that redemptions and liquidity mechanisms functioned as designed. Nevertheless, the incident reflects how quickly market sentiment can shift, especially for newer stablecoins tied to high-profile figures.

The company has not disclosed technical details of the alleged attack.

The coming days, including any investigation disclosures, will likely determine whether the event remains a short-lived market shock or develops into a broader credibility test for USD1.

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Vitalik Buterin Offloads Millions in Ethereum Holdings

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

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.

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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.

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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.

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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.

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Two charged in Australia over $5 million crypto fraud

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Two charged in Australia over $5 million crypto fraud

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

Summary

  • The New South Wales Police Force has charged two men following an investigation into an alleged $5 million cryptocurrency investment scam targeting Australians.
  • Police allege victims — including elderly and vulnerable individuals — were lured via social media into depositing funds into a fake trading platform, with money funneled through multiple crypto wallets.
  • One man has been charged and granted conditional bail, while investigations continue as authorities warn Australians about rising investment scam losses.

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.

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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.

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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.

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Bitcoin Rally To $75K Possible If These 3 Triggers Are Pulled

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Bitcoin Rally To $75K Possible If These 3 Triggers Are Pulled

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.

Bitcoin/USD, April 2025. Source: TradingView

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.

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Overnight repurchase Treasury securities purchased by the Fed. Source: US Fed

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.

Oracle (ORCL US) vs Coreweave (CRWV US). Source: TradingView

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

Bitcoin miners’ gross profits at $0.07/kWh. Source: HashRateIndex

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.

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