news 
Title: USDF Stablecoin Backed by DWF Labs Falls to 94 Cents Despite $609M Off-Chain Reserves
The stablecoin, USDF, issued by Falcon Futures and backed by DWF Labs, has suffered a significant depeg, plummeting to an unprecedented 94.3 cents on July 8, 2025. This unfortunate event raises concerns about the transparency and management of the reserve assets.
As reported, over $609 million in USDF stablecoin reserves remain off-chain, further complicating the situation. An astonishingly low $25 million is stored on-chain, making it difficult for users to track the value of assets supporting the stablecoin. The lack of clarity surrounding the composition of these reserves and their potential exposure to CEX exchanges and DeFi strategies has sparked alarm in the crypto community.
LlamaRisk, a prominent DeFi risk assessor, has flagged concerns over the unilateral control DWF Labs has over the operational management of the reserve assets. This raises questions about the potential for insolvency due to mismanagement or failure of these underlying strategies.
In light of this incident, it is crucial that Falcon Futures and DWF Labs provide a detailed breakdown of their reserve structure, including asset types, diversification, and conversion timelines. Transparency in such operations is essential for maintaining trust within the cryptocurrency sector.
The situation has also drawn attention to DWF Labs’ involvement in various Trump crypto initiatives, including support for World Liberty Financial’s USD1 stablecoin. This latest event has sparked debate about the company’s broader operational practices.
As a result of this incident, users are left with more questions than answers regarding the USDF stablecoin and its associated risks.
Source: coinchapter.com
