Trump Family Crypto Scheme Caught Partnering With Sanctioned Criminal Network

Pay-to-Play Meets Pig Butchering

World Liberty Financial (WLFI), the cryptocurrency project launched by the Trump family to monetize political access, is now under scrutiny for partnering with an entity linked to sanctioned criminals. According to a CoinDesk investigation, WLFI entered a "strategic partnership" last November with AB DAO, a Southeast Asian blockchain project that promotes a resort development tied to the Prince Group, a Cambodian criminal network identified by international law enforcement.

The Prince Group connection includes Chen Zhi, a Chinese national indicted by the U.S. government in October 2024 for running a massive "pig butchering" cryptocurrency scam. Federal prosecutors attempted to seize significant Bitcoin holdings linked to the scheme. These criminal networks operate across multiple countries, using front companies in hospitality, real estate, and technology to launder money through cryptocurrency.

World Liberty Financial claims it had no idea AB DAO was promoting a resort tied to sanctioned criminals when they signed the deal. But compliance experts are asking the obvious question: did they bother to look, or did they just not care?

Due Diligence or Willful Ignorance?

Standard due diligence for any legitimate financial partnership includes checking partners against sanctions lists maintained by the Office of Foreign Assets Control (OFAC), verifying ownership structures, and reviewing public records for red flags. These are not exotic procedures. They are basic steps that any competent financial operation follows before entering a business relationship.

World Liberty Financial either failed to conduct this basic screening or ignored what they found. Given the Trump family's history of questionable business dealings, neither explanation inspires confidence. The project's representatives insist they followed "standard due diligence," but the results speak for themselves: they partnered with a group promoting a criminal enterprise.

The cryptocurrency industry already struggles with a reputation for enabling money laundering and sanctions evasion. When a project with direct ties to a former president and his family gets caught doing business with sanctioned entities, it reinforces every skeptic's worst assumptions about crypto as a tool for criminals and grifters.

Selling Access Through Tokens

World Liberty Financial operates by selling tokens that supposedly give holders governance rights in the project. In practice, it functions as a way for the Trump family to monetize political access and influence. Wealthy individuals and entities can buy tokens, gaining a connection to the Trump brand and potentially to Trump himself.

This model creates obvious corruption risks. Who is buying these tokens? What are they hoping to get in return? The AB DAO partnership suggests that WLFI is not particularly concerned about the backgrounds of its business partners, as long as they are willing to pay.

The project launched while Trump was running for president again, and it continues operating now that he is back in office. This creates a direct pipeline for anyone seeking to curry favor with the administration: buy tokens in the family business, establish a partnership, and gain access to the Trump orbit.

Multiple Agencies Now Watching

Several federal agencies now have reason to investigate World Liberty Financial's operations:

The Financial Crimes Enforcement Network (FinCEN) monitors anti-money laundering compliance. Partnering with entities tied to sanctioned criminals is exactly the kind of red flag that triggers enforcement action.

The Office of Foreign Assets Control (OFAC) enforces sanctions compliance. Doing business with individuals or entities under sanctions, even indirectly, violates federal law.

The Securities and Exchange Commission (SEC) examines whether cryptocurrency tokens constitute unregistered securities. WLFI's governance tokens may fall under securities laws, subjecting the project to additional disclosure and compliance requirements.

The Department of Justice (DOJ) investigates potential criminal violations. If World Liberty Financial knowingly partnered with sanctioned entities or failed to implement required compliance measures, criminal charges could follow.

These agencies increasingly coordinate their enforcement efforts, particularly in cases involving cryptocurrency and political figures. The World Liberty Financial situation touches on multiple priority areas: sanctions evasion, money laundering, securities fraud, and political corruption.

The Pattern of Trump Family Grift

This incident fits a well-established pattern of Trump family business practices: cut corners, ignore compliance requirements, and partner with anyone willing to pay, regardless of their background. From Trump Tower deals with money launderers to golf course developments with oligarchs, the family has consistently prioritized profit over legal and ethical concerns.

World Liberty Financial represents a new frontier in this grift: using cryptocurrency's regulatory ambiguity and the family's political power to create a vehicle for selling access and influence. The AB DAO partnership reveals how little due diligence the project conducts before entering business relationships.

The broader cryptocurrency industry now faces guilt by association. Legitimate blockchain projects working to build compliant, transparent systems get tarred with the same brush as Trump family schemes that partner with sanctioned criminals. This damages the entire sector's reputation and provides ammunition to regulators seeking to crack down on digital assets.

What Happens Next

World Liberty Financial will likely claim this was an innocent mistake, a failure of due diligence rather than willful misconduct. They may terminate the AB DAO partnership and promise to implement better screening procedures. But the damage is done. The partnership reveals either stunning incompetence or deliberate indifference to sanctions compliance.

Federal agencies will determine whether this incident warrants enforcement action. If investigators find evidence that WLFI knowingly partnered with sanctioned entities or systematically failed to implement required compliance measures, the project and its principals could face significant penalties.

For the Trump family, this is just another scandal in a long line of questionable business dealings. For the cryptocurrency industry, it is another black eye that reinforces the perception of digital assets as tools for criminals and grifters. And for anyone concerned about corruption and the rule of law, it is further evidence that the Trump family will do business with anyone, including sanctioned criminal networks, as long as there is money to be made.

The only question is whether federal regulators will hold them accountable or whether political connections will once again shield the Trump family from consequences for their actions.