Trump-Linked World Liberty Under Fire for Ties to Sanctioned Group

TLDR

• World Liberty, a cryptocurrency venture co-founded by Trump, faces scrutiny over its ties to a Southeast Asian blockchain project.
• The partnership with AB DAO has raised concerns due to its connection to figures linked to Cambodia’s Prince Group, under U.S. and U.K. sanctions.
• World Liberty claims it conducted thorough due diligence before integrating its stablecoin with AB DAO’s blockchain network.
• The deal with AB DAO was made shortly after coordinated sanctions were imposed on Prince Group founder Chen Zhi and associates.
• Legal experts have raised concerns about potential conflicts of interest following a $500 million acquisition by UAE adviser Sheik Tahnoon. 

A cryptocurrency venture co-founded by U.S. President Donald Trump, World Liberty, is under scrutiny after forming a partnership with a Southeast Asian blockchain project, AB DAO. This comes after The Times reported that AB DAO had ties to a resort project linked to individuals later sanctioned by the U.S. and U.K. The development has raised concerns about the effectiveness of World Liberty’s due diligence processes.

World Liberty and Its Ties to AB DAO

World Liberty, launched in September 2024, has faced increasing pressure due to its involvement with AB DAO. The firm integrated its USD1 stablecoin into AB DAO’s blockchain network, which promoted a resort project involving figures connected to Cambodia’s Prince Group. Prince Group, described by U.S. authorities as a major criminal network, was hit with coordinated sanctions from the U.S. and U.K. in November 2024, right after the deal between World Liberty and AB DAO was announced.

In response to questions raised, World Liberty claimed that it had conducted thorough due diligence before entering the partnership. A spokesperson for the company emphasized that it had no association with the sanctioned individuals involved in the project. “We have no relationship with these individuals,” the company said, denying any wrongdoing or direct connection to the figures involved with the Prince Group.

Controversial Partnership Raises Governance Concerns

The scrutiny over World Liberty’s partnership with AB DAO adds to ongoing concerns about the company’s governance and external connections. An investigation by The Wall Street Journal earlier in the year revealed that the company had also agreed to a deal in which UAE national security adviser Sheik Tahnoon bin Zayed Al Nahyan quietly acquired a 49% stake in World Liberty. This acquisition, valued at $500 million, occurred shortly before Trump’s anticipated return to office.

Legal experts have voiced concerns over the potential conflicts of interest that could arise from such partnerships, especially given Trump’s political ties. While the White House denied any impropriety, the deal marked an unprecedented move in U.S. politics, further complicating World Liberty’s image. Critics have questioned whether the firm’s leadership has fully understood the broader political and legal risks involved in these business dealings.

The ongoing scrutiny over World Liberty highlights the complexities of conducting business in the cryptocurrency and blockchain sectors. The Times investigation revealed that AB DAO had been involved with the resort project that had promoted ties to the Prince Group until very recently. The figures tied to the Prince Group had been removed from the project only after the sanctions were imposed, raising questions about the level of scrutiny World Liberty had applied in its due diligence process.

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