World Liberty Faces Scrutiny Over Ties to Sanctioned Group

TLDR

• World Liberty—a cryptocurrency venture co-founded by Trump—is under scrutiny for its links to a Southeast Asian blockchain initiative.
• Its partnership with AB DAO has sparked concerns due to AB DAO’s connections to individuals associated with Cambodia’s Prince Group, which is sanctioned by the U.S. and U.K.
• World Liberty asserts it performed comprehensive due diligence prior to integrating its stablecoin into AB DAO’s blockchain system.
• The agreement with AB DAO was struck shortly after coordinated sanctions were imposed on Prince Group founder Chen Zhi and his associates.
• Legal specialists have raised concerns about potential conflicts of interest following a $500 million acquisition by UAE advisor Sheik Tahnoon.

(SeaPRwire) –   World Liberty, a crypto venture co-founded by former U.S. President Donald Trump, is being scrutinized after forming a partnership with AB DAO, a Southeast Asian blockchain project. This follows a report by The Times indicating AB DAO had ties to a resort project linked to individuals later sanctioned by the U.S. and U.K. The development has cast doubt on the effectiveness of World Liberty’s due diligence procedures.

World Liberty and Its Ties to AB DAO

Launched in September 2024, World Liberty has faced growing pressure due to its involvement with AB DAO. The firm integrated its USD1 stablecoin into AB DAO’s blockchain network, which supported 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 joint U.S. and U.K. sanctions in November 2024, right after the deal between World Liberty and AB DAO was announced.

In response to questions raised, World Liberty stated it had carried out extensive due diligence before entering the partnership. A company spokesperson emphasized that it had no association with the sanctioned individuals involved in the project. “We have no relationship with these individuals,” the firm said, denying any wrongdoing or direct connection to the figures linked to 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 this year revealed that the firm had also agreed to a deal where UAE national security advisor Sheik Tahnoon bin Zayed Al Nahyan secretly acquired a 49% stake in World Liberty. This $500 million acquisition occurred shortly before Trump’s anticipated return to office.

Legal experts have voiced concerns over potential conflicts of interest arising 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 fully understood the broader political and legal risks involved in these business dealings.

The ongoing scrutiny of World Liberty underscores the complexities of conducting business in the cryptocurrency and blockchain sectors. The Times’ investigation found that AB DAO had been involved with the resort project, which promoted ties to the Prince Group until very recently. The figures linked to the Prince Group were removed from the project only after sanctions were imposed, raising questions about the rigor of World Liberty’s due diligence process.