Trump-backed crypto stablecoin dips following ‘attack,’ quickly recovers

The Trump family-backed crypto stablecoin, USD1, briefly ​dipped below its $1 benchmark price ⁠on Monday, to around $0.994, but quickly recovered.

A spokesman for World Liberty Financial, for ‌which USD1 is a signature product, said in a statement to ‌Reuters its engineering and security teams ‌had “successfully ⁠repelled a coordinated attack.”

World Liberty, which ⁠was co-founded in 2024 by US President Donald Trump, his three sons and a group of ​partners, added in ‌a post on X.com that the X accounts of its co-founders were accessed without authorisation. It did not name ‌which ones. There was no hack ​of the digital contracts and wallets behind WLFI or USD1, the ⁠post added. “Zero smart contracts were affected. All USD1 funds remain completely safe, ‌secure, and fully backed. Our infrastructure and team operated exactly as designed,” the post said.

Like other stablecoins, USD1 is backed by reserves of U.S. dollars and cash-like securities so that ‌its market price stays close to the benchmark ​of $1. Some deviation is normal, but more abrupt declines, even if ⁠small, are closely watched. USD1 was last ⁠trading at $0.9994, within its historical range. It is the fifth largest ‌stablecoin by market cap, according to crypto industry tracker CoinGecko.com.