World Liberty Financial Project Warns Against Fake USD1 Tokens
World Liberty Financial (WLFI), a decentralized finance (DeFi) project partly owned by US President Donald Trump’s family, has issued a warning to investors regarding fake versions of its upcoming USD1 stablecoin.
Official Announcement
In a recent announcement on X (formerly Twitter) on March 24, WLFI and Changpeng Zhao (CZ) clarified that the USD1 stablecoin is not yet available for trading. They emphasized that any circulating USD1 tokens at the moment are fraudulent and cautioned the public to be vigilant.
“USD1 is not currently tradable. Beware of scams.”
About WLFI
WLFI is a DeFi project that aims to create a decentralized ecosystem involving lending, borrowing, and stablecoin-based transactions. The project has allocated $28.6 million to six digital assets, including ETH, WBTC, MOVE, SEI, AVAX, and MNT since February.
Despite the substantial investment, the project is currently facing an unrealized loss of $1.62 million, according to blockchain analytical platform SpotOnChain.
Rise of Fake USD1 Tokens
While WLFI had previously disclosed its plans for a stablecoin, the project had not revealed any specifics until speculation heightened following CZ’s acknowledgment of the USD1 smart contract on the BNB Chain.
Zhao mentioned that the token was deployed in early March and is currently undergoing testing. Lookonchain, a blockchain analysis firm, reported that Wintermute, a prominent crypto market maker, was engaging with the token. On-chain data revealed that over $3.5 million worth of USD1 has already been minted.
However, the increased interest also attracted scammers who swiftly created imitation tokens across various networks like Solana, Ethereum, and BNB Chain. Dexscreener data confirmed that multiple unrelated projects had adopted the same name to deceive investors.
Zhao advised caution to the public, emphasizing that WLFI’s official token is not yet live.
“The official USD1 is not tradable yet. Please do not fall for the scams.”
Once launched, USD1 will enter the competitive arena of major dollar-pegged stablecoins like Tether’s USDT, Circle’s USDC, and Ripple’s RLUSD.
