World Liberty Financial (WLFI), a DeFi project partly owned by US President Donald Trump’s family, has cautioned investors about fake versions of its yet-to-launch USD1 stablecoin.
In a March 24 announcement on X (formerly Twitter), the project and Changpeng Zhao (CZ) clarified that USD1 is not yet available for trading. It urged the public to stay vigilant, stressing that any USD1 token currently circulating is fraudulent.
The project stated:
“USD1 is not currently tradable. Beware of scams.”
WLFI is a DeFi project focused on building a decentralized ecosystem that includes lending, borrowing, and stablecoin-based transactions.
Since February, the project has allocated $28.6 million to six digital assets, including ETH, WBTC, MOVE, SEI, AVAX, and MNT.
Despite the heavy investment, the portfolio is currently sitting on an unrealized loss of $1.62 million, according to blockchain analytical platform SpotOnChain.
Fake USD1 tokens surface
Although WLFI’s plans for a stablecoin have been public for months, the team had not publicly shared any details about the project until speculations grew after former Binance CEO CZ acknowledged the USD1 smart contract on the BNB Chain.
Zhao noted that the token had been deployed in early March and was undergoing testing.
Blockchain analysis firm Lookonchain reported that prominent crypto market maker Wintermute was interacting with the token. On-chain data shows that over $3.5 million worth of USD1 has already been minted.
However, the buzz has also attracted scammers.
Within hours of Zhao’s post, imitation tokens began appearing across major networks such as Solana, Ethereum, and BNB Chain. Data from Dexscreener confirmed that multiple unrelated projects had used the same name to mislead investors.
Due to this, Zhao urged the public to remain cautious while emphasizing that WLFI’s official token is not yet live.
He stated:
“The official USD1 is not tradable yet. Please do not fall for the scams.”
Once launched, USD1 will compete with major dollar-pegged stablecoins such as Tether’s USDT, Circle’s USDC, and Ripple’s RLUSD.
The post World Liberty Financial cautions about USD1 scams amid upcoming stablecoin launch appeared first on CryptoSlate.
