A cryptocurrency venture linked to US President Donald Trump is facing fresh scrutiny after partnering with a company whose “flagship project” had recently involved individuals later sanctioned by the US and UK
a crypto business co-founded by Trump and partly owned by his family said it conducted due diligence before integrating its USD1 stablecoin with Southeast Asia-based blockchain project AB DAO.
However, a Times investigation published on Monday found that the company was unaware that AB DAO, until weeks earlier, had been promoting a resort project linked to individuals associated with Cambodia’s Prince Group, an organization that US authorities have described as a large transnational criminal network.
The partnership was announced in November, shortly after coordinated US and UK sanctions targeting Prince Group founder Chen Zhi and associates for alleged involvement in large-scale fraud. Individuals associated with the group had been involved in AB DAO’s promoted resort project before being removed following sanctions.
CoinDesk has reached out to WLFI, launched in September 2024, for comment, but the company had not responded by the time of publication. However, WLFI told The Times that it “has no connection or relationship with the sanctioned individuals.”
The development contributes to broader questions surrounding World Liberty’s governance and external relations. Reporting by The Wall Street Journal in January revealed that a company backed by the United Arab Emirates’ (UAE) national security adviser, Sheik Tahnoon bin Zayed Al Nahyan, quietly agreed to acquire a 49% stake in WLFI for $500 million shortly before Trump returned to office.
The deal marked “something unprecedented in American politics,” according to the Wall Street Journal, which cited legal experts who raised potential conflicts of interest. The White House has denied any wrongdoing.
There is no indication that WLFI had any direct connection to the Prince group, according to The Times. However, the report raises questions about the effectiveness of due diligence around the partnerships.
