bitgo

World Liberty Financial said Monday that attackers targeted its USD1 stablecoin in a coordinated effort to shake market confidence. The dollar-pegged token briefly slipped to about $0.99707 before returning closer to its $1 peg, according to The Block’s data. The Trump family-backed crypto project claimed hackers accessed co-founders’ X accounts, paid influencers to spread fear, and opened large short positions on WLFI to profit from market disruption.
Brief Dip and Alleged Multi-Vector Attack
The company posted on X that attackers hacked several WLFI co-founder accounts and pushed negative narratives online. It said those actors also opened massive #WLFI short positions to benefit from panic selling. World Liberty stated the strategy failed as the USD1’s mint-and-redeem system and 1:1 backing kept the token stable.
Market data showed the token fell only slightly before moving back toward parity. Such minor price swings often occur in stablecoins due to trading spreads, liquidity gaps, exchange differences, and arbitrage timing. Experts generally do not classify a 0.01% to 0.03% fluctuation as a depeg unless it lasts for an extended period.
Meanwhile, market observer Wu Blockchain reported that co-founder Eric Trump deleted several WLFI posts on X before the token’s price moved lower. The exact mechanism behind the alleged attack remains unclear at the time of writing.
World Liberty later clarified that unauthorized access involved co-founders’ X accounts rather than wallets or core infrastructure. The company stated that no smart contracts were affected and that all USD1 funds remain secure and fully backed.
Reserve Backing and Oversight Structure
#USD1 holds reserves in custody with #BitGo , including short-term US Treasuries. World Liberty said its infrastructure and team operated as designed during the incident. A company spokesperson told The Block that engineering and security teams repelled a coordinated attack from multiple vectors.
According to the Financial Times, BitGo compiles and checks USD1’s monthly reserve reports. Crowe LLP then examines those reports under attestation standards set by the American Institute of Certified Public Accountants.
Arkham data shows that almost $4.5 billion of USD1 sits on the Binance exchange. Binance co-founder Changpeng Zhao attended a World Liberty conference last week. Zhao pleaded guilty in 2023 to failing to maintain anti-money laundering controls at Binance and received a presidential pardon in October.
Earlier, Zach Witkoff announced that Abu Dhabi investment vehicle MGX used USD1 to complete a $2 billion investment in Binance. That transaction placed the stablecoin at the center of a major institutional deal.
Market Context and Broader Developments
The wider crypto market has faced a heavy sell-off in recent weeks. Bitcoin fell about 4% on Monday to $64,600 and remains nearly 50% below its early October peak. At the same time, WLFI, the project’s free-floating token, dropped around 3%, according to The Block’s price page.
Earlier this year, WLTC Holdings LLC filed an application to establish a national trust bank to expand USD1 operations. World Liberty also engages in crypto lending, adding another layer to its business model.
The project drew scrutiny after a United Arab Emirates-based entity used USD1 to facilitate a $2 billion #Binance investment. In addition, an Abu Dhabi investment vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan acquired a 49% stake in World Liberty Financial for $500 million before President Donald Trump’s inauguration.
As the token stabilizes near its peg, one question lingers: will heightened scrutiny reshape how investors assess stablecoin resilience during coordinated market shocks?
Conclusion
World Liberty Financial said attackers accessed co-founders’ X accounts, pushed fear online, and opened large WLFI shorts as USD1 briefly dipped near $0.997. The firm said wallets and smart contracts stayed safe, and USD1 remained fully backed with BitGo-held reserves. Readers should verify claims using official updates and reserve reports.

#blockchain #stablecoin

Litecoin (LTC) is up 16.4% to $117 after Canary Capital filed an amended S-1 registration statement for the Litecoin ETF with the SEC.

The statement includes an updated custody agreement between Coinbase Custody Trust and #Bitgo . Analysts believe the amendments point to SEC involvement, but caution that the approval process is still in its early stages.
#Litecoin (LTC) recently suffered from the approval of the Litecoin #ETF , which Price has risen significantly due to growing optimism around the opportunity. Canary Capital's recent amended registration statement on Form S-1 filed with the U. S. Securities and Exchange Commission has caused the cryptocurrency market to rebound, and the value of #LTC has risen significantly.
January 15, 2025, Canary Capital filed an amended registration statement on Form S-1 for the proposed Litecoin ETF. A registration statement on Form -1 was filed. The amendment is seen as an important step toward obtaining approval from the SEC.
The amendment includes an update to the custody agreement between Coinbase Custody Trust and BitGo, stating that the custody agreement meets SEC standards. While the amendment itself does not guarantee approval, it indicates that the SEC is actively reviewing the proposal.
news of the amendment filing had an immediate impact on the price of Litecoin. After the announcement, LTC rose by 16.4% to reach $117. This price jump reflects the market's optimism about the likelihood of ETF approval and positive sentiment about Litecoin's future. He noted that the SEC's feedback on Form S-1 supports the possibility of Litecoin becoming the next cryptocurrency to get ETF approval. However, both analysts cautioned that the approval process is still in its early stages and a formal 19b-4 filing is required for a formal SEC decision.
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