World Liberty Financial has accused critics of targeting a “coordinated attack” against its $USD1 stablecoin. This news follows speculation that the Trump-backed crypto project could be the target of an upcoming insider trading investigation conducted by popular blockchain detective ZachXBT.
The allegations surfaced after ZachXBT posted on his X account that he would release a “major investigation dropping February 26 on one of crypto’s most profitable businesses where multiple employees abused internal data to insider trade over a prolonged period of time.”
There was no mention of a name or company, but the crypto community immediately began speculating about who the potential target was.
World Liberty’s token ($WLFI) has since steadied after dipping as low as $0.1088 today, while the $USD1 stablecoin briefly fell under its $1 peg.
The timing also coincided with other observations that Eric Trump had deleted a $WLFI-related post, thus fueling even more speculation that the investigation might be aimed at $WLFI.
$WLFI claims hacked accounts and paid FUD campaign
World Liberty Financial wasted no time in clearing up the rumors, posting an official statement today declaring that “a coordinated attack was launched against $USD1 this morning.”
The project also claimed that “attackers hacked several $WLFI cofounder accounts, paid influencers to spread FUD, and opened massive $WLFI shorts to profit from the manufactured chaos.”
In its statement, $WLFI emphasised that the attack “didn’t work,” noting that its token continues to trade smoothly thanks to its “sound mint-and-redeem mechanism and full 1:1 backing.”
However, World Liberty Financial did not provide any blockchain evidence for the alleged hacked accounts, and did not verify which influencers were paid. There is also no on-chain data to support the claim of coordinated short positions as well.
Eric Trump doubles down with Maldives project announcement
Amid all the speculation about the Trump-backed project, Eric Trump posted on X about $WLFI’s tokenized luxury resort project in the Maldives, which plans to build 100 beach and overwater villas that will be tokenized at the development level.
“Extremely excited to bring The Trump Organization to the Maldives and combine these two incredible worlds – Hard Assets with Digital Assets,” Eric Trump stated.
Earlier this month, Apex Group, a firm with $3.5 trillion in assets, also agreed to pilot the token.
However, the activity on Eric Trump’s X profile appeared to have been enough of a smoking gun, as community members noticed that he had deleted an earlier $WLFI message.
Nonetheless, $WLFI says the tokenization approach aims to unlock high-margin returns usually achieved by financial institutions.
World Liberty avoids major drama
$USD1 currently has about 4.8 billion tokens in circulation. It has since returned to its $1 peg after the brief fall during the speculation saga.
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$USD1 market data. Source: CoinMarketCap
However, despite weathering the storm from the “coordinated attack,” President Trump’s ties to the $WLFI and its $USD1 stablecoin remain a frequent target of opposition inquiries. Cryptopolitan reported this month that Senators Elizabeth Warren and Andy Kim called for Treasury head Bessent to review a $500 million stake in the Trump-linked crypto project by a UAE government-linked entity.
As things stand, ZachXBT’s intended target remains unknown. All anyone has to go on is that it is “one of crypto’s most profitable businesses.”
On the other hand, $WLFI has not provided any updates since it claimed a coordinated attack involving hacked accounts and paid influencers targeted its tokens.
In the meantime, speculation will continue to grow, and the focus may soon shift from World Liberty Financial if a new target gains traction on Crypto Twitter.