Trump Family-Backed WLFI Faces Questions Over Partner’s Links to Crime-Connected Project
Summary
- A partner of World Liberty Financial (WLFI), the Trump family-backed project, was found to have previously promoted a project linked to a criminal organization.
- Concerns are rising over the adequacy of partner screening after AB DAO, which partnered with WLFI, was found to have links to a project involving sanctioned individuals.
- The market remains focused on DeFi projects’ partnership structures and risk management systems, while watching for follow-up measures and any additional investigation.
Forecast Trend Report by Period
A partner that worked with World Liberty Financial, the DeFi project involving the Trump family, previously promoted a project tied to a criminal network, raising questions about how the venture vets partners.
CoinDesk reported on April 7 that AB DAO, which signed a partnership with World Liberty Financial in November 2024, was connected to a project involving individuals sanctioned by the US and UK.
AB DAO, a Southeast Asia-based blockchain project, had promoted a resort project linked to Cambodia’s Prince Group, which has been associated with a criminal network, the report said. The project also involved an individual the US government has sought to indict and from whom it has sought to seize Bitcoin.
According to CoinDesk, WLFI reviewed the project before entering into the partnership but did not uncover those connections. That has sparked concerns over whether its partner-screening procedures were adequate.
The case has drawn attention to how DeFi projects structure partnerships and manage risk. Market participants are also watching for any response and whether additional investigations follow.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
