WLFI, a cryptocurrency company partially owned by former US President Donald Trump and members of his family, has come under renewed scrutiny following its recent business collaboration. The company is facing a fresh investigation after it came to light that individuals previously involved in its latest partnership were subject to US and UK sanctions.
AB DAO partnership and historical connections
Founded in September 2024, WLFI recently announced the integration of its US dollar-pegged stablecoin, USD1, with AB DAO, a blockchain platform based in Southeast Asia. Just before this partnership was revealed, it emerged that several individuals from the Prince Group—an entity under US and UK sanctions—had been involved in an AB DAO-backed resort project. Although the Prince Group’s participation was not directly with WLFI, the ongoing collaboration pushed the company into the spotlight.
Prince Group operates extensively in Cambodia and is described by US authorities as an international criminal syndicate. Its founder, Chen Zhi, along with certain associates, faced significant fraud allegations and was sanctioned in late 2023. Reports indicate that these individuals were actively participating in the AB DAO-promoted resort project until only a few weeks ago; they were reportedly removed from the initiative following the imposition of sanctions.
WLFI statements and due diligence practices
WLFI maintains that it undertook all necessary checks before entering into this recent collaboration. In a public statement, the company emphasized that it has no relationships or links with any sanctioned individuals.
In comments to The Times, WLFI asserted that it has no ties to individuals subject to sanctions.
Despite these reassurances, questions have arisen regarding WLFI’s procedures for choosing partners and overseeing compliance in its business dealings. Earlier this year, media outlets reported that a firm backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan acquired a 49 percent stake in WLFI for $500 million, just before Trump’s possible return to office. This transaction drew attention to the company’s governance standards and external influences.
Analysts noted that the scale of the UAE-backed investment is unprecedented in US politics, raising concerns over the potential for conflicts of interest. The White House, however, issued statements indicating that there was no evidence of wrongdoing in relation to the transaction.
Nonetheless, the recent AB DAO partnership and indirect links to sanctioned parties have intensified discussion around WLFI’s oversight mechanisms and its transparency in international dealings.
A recent report from The Times found no direct connection between WLFI and the Prince Group, but highlighted that questions surrounding the partnership and vetting processes persist.
It is expected that WLFI will issue further clarifications in the coming period, particularly regarding its security policies and legal compliance standards.
