Crypto06 April, 20261 min read
Trump-Backed World Liberty Financial Faces Scrutiny Over Partnership With Sanctioned Associates
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
WLFI partnered with AB DAO, whose associates were linked to a sanctioned network. AB DAO's flagship project involved a resort linked to individuals later sanctioned.
Controversial Blockchain Partnership
World Liberty Financial is facing scrutiny after partnering with a blockchain project whose flagship initiative involved sanctioned individuals. The Times reported WLFI was unaware AB DAO had promoted a resort tied to the Prince Group.
WLFI insists it conducted due diligence and has no relationship with sanctioned figures. The deal came just weeks after coordinated US-UK sanctions against Prince Group founder Chen Zhi.
Vetting and Governance Questions
The partnership deepened concerns about WLFI’s governance and vetting processes. WLFI reviewed the project but did not uncover connections to sanctioned individuals.
The controversy comes on top of a $500 million deal giving a UAE security adviser a 49 percent stake. Legal experts have voiced concerns about potential conflicts of interest.
Wider Implications for DeFi
The case drew attention to how DeFi projects structure partnerships and manage risk. AB DAO’s resort project involved individuals later sanctioned by the US Treasury in a crackdown on the Prince Group. The partnership amplified the spotlight on challenges of reconciling political affiliations with cryptocurrency.