Solana Stablecoin USD1 Accused of Concealing Backdoor Functions

A recent analysis by Justin Sun has uncovered potential backdoor functions in the USD1 stablecoin on the Solana blockchain.

The USD1 contract, which is issued by World Liberty Financial (WLFI), allows the issuer to drain funds from any wallet after an April 2026 upgrade, according to Sun's findings. This power was not present in the original GitHub source but was added through the on-chain update.

This discovery has drawn comparisons to previous allegations of backdoor functions in the WLFI token. The USD1 contract's behavior is distinct from other stablecoins like USDC and USDT, which only freeze or destroy balances when necessary.