A cryptocurrency venture that partnered with a firm linked to the family of U.S. President Donald Trump has come under scrutiny after individuals associated with the project were sanctioned in connection with an international scam network investigation.
According to a report by The Wall Street Journal, the crypto venture known as AB previously worked with World Liberty Financial (WLF), a digital asset company connected to Trump’s family. The collaboration involved integrating WLF’s stablecoin, USD1, into AB’s blockchain ecosystem.
However, the partnership has drawn attention after U.S. authorities sanctioned two businessmen linked to AB as part of a wider crackdown on a global fraud operation known as the Prince Group scam network.
The U.S. Treasury Department alleges that the network operated large-scale online fraud schemes from compounds in Southeast Asia. These operations reportedly relied on “pig-butchering” scams, a form of investment fraud in which victims are persuaded to invest in fake cryptocurrency opportunities after being groomed through online relationships.
Investigators say the scheme generated billions of dollars in illicit proceeds and involved trafficking victims who were forced to run scams targeting people across the world.
The Wall Street Journal report states that the sanctioned individuals had been involved in promoting a blockchain-themed resort development project in East Timor that was connected to the AB ecosystem. The project was marketed as a luxury crypto tourism hub featuring villas, a yacht club, and blockchain-related events.
Despite the controversy, World Liberty Financial said its relationship with AB was limited to a technology integration agreement and did not involve any financial transactions. The company also stated that it had no knowledge of the sanctioned individuals at the time of the collaboration.
Representatives for the AB project similarly said they severed ties with the individuals after the U.S. sanctions were announced.
The revelations have raised questions about due diligence practices in the rapidly evolving cryptocurrency industry, where partnerships and technology integrations can create unexpected exposure to legal and reputational risks.
Analysts say the case highlights the importance of background checks and compliance measures as crypto companies increasingly interact with global partners and politically connected businesses.
