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

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

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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XRP Crypto Falls to $1.31 After Failed Breakout as Liquidity Dries Up

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XRP Crypto slipped to $1.31 after a hard rejection at $1.35 left traders with little to show from a breakout attempt that briefly looked credible.

The 2% drop is secondary – what matters is the combination of that ceiling rejection and visibly thinning order book depth, a setup that historically precedes sharper directional moves.

The failed push came off a March 31 high of $1.37, with XRP unable to clear $1.40 resistance and grinding lower through a $1.28–$1.33 range ever since.

That recent run toward $1.35 now looks like a distribution zone rather than a launchpad, and the market cap sits at $80.6 billion with 24-hour volume at just $2.01 billion – reduced participation that confirms the liquidity problem is real. The chart now forces a binary question: does $1.28 hold, or does the next support at $1.15 come into play faster than bulls expect?

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XRP Crypto, Reclaim $1.35 or Retreat to $1.15?

XRP Crypto is trading below both its 50-day EMA ($1.38) and 200-day EMA ($1.88), with price pinned inside a descending channel on the 4-hour chart where both the 50-SMA and 200-SMA act as overhead ceiling.

Daily RSI reads 38 – weak momentum, but not yet in oversold territory, which means there’s no technical floor from that indicator alone. MACD is negative and expanding downward, removing any near-term momentum argument.

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Key resistances sit at $1.3500; load-bearing supports are $1.3000 and $1.2698. The $1.28 level has held since February, aligning with the 23.6% Fibonacci retracement – below it, holder support thins materially until $1.15.

Source: TradingView

The bull case requires a clean reclaim of $1.35 on volume – not a wick, a close – followed by a hold above the 50-day EMA at $1.38.

That sequence opens $1.45 and, with a catalyst, $1.60 tied to regulatory progress on the CLARITY Act, which carries a 63% probability of passing in 2026 per current prediction markets. Long-term analysts maintain structurally bullish frameworks, but those scenarios require macro conditions – FOMC dovishness, easing geopolitical tensions – that aren’t present right now.

The bear case activates on a confirmed daily close below $1.28. Analysts are flagging $1.15 as the next meaningful support, with more aggressive targets at $0.80 contingent on oil above $100 and Fed rate holds through Q2.

The uncomfortable reality is that XRP is down nearly 30% year-to-date and 64% from its $3.65 all-time high, and every bounce has been sold. The single most important level: $1.28. Hold it and the range stays intact; lose it and $1.15 becomes the next anchor.

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The post XRP Crypto Falls to $1.31 After Failed Breakout as Liquidity Dries Up appeared first on Cryptonews.

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls.

The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident.

The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors.

In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day. The remaining 0.3%, 1,788 BTC that had already been sold, was covered using company reserves.

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Related: Bithumb seeks to reappoint CEO despite recent controversies: Report

South Korea mandates five-minute asset checks

Under the new measures, exchanges must implement automated ledger-to-wallet reconciliation systems operating on a five-minute cycle. They will also be required to introduce defined criteria for triggering automatic transaction halts in the event of significant discrepancies.

Beyond reconciliation, regulators are pushing for sweeping changes to internal operations. High-risk processes like promotional payouts will require stronger oversight, including third-party cross-checks and multi-level approval systems. Exchanges will also need to separate high-risk accounts and implement automated verification tools for payments.

Top Korean crypto exchanges. Source: CoinGecko

Furthermore, external audits will shift from quarterly to monthly, while disclosures will expand to include detailed asset balances by wallet and ledger.

“The financial authorities and the DAXA plan to complete the rule changes needed to implement the improvement measures within April this year,” the FSC wrote.

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Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

Bithumb delays IPO to post-2028

Last week, Bithumb announced it is now targeting an IPO after 2028, marking another delay from its earlier 2025 plans as it works through restructuring and regulatory pressure. The exchange said it will focus on strengthening accounting policies and internal controls through 2027, following an advisory agreement with Samjong KPMG.

Meanwhile, Naver Financial has also delayed its planned share swap with Dunamu by about three months, now targeting a shareholder vote on Aug. 18 and completion by Sept. 30.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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