World Liberty's Due Diligence Apparently Missed the 'Sanctioned Resort' Memo

World Liberty Financial, the crypto venture co-founded by Donald Trump and partly owned by his family, is catching heat after partnering with AB DAO, a Southeast Asia-based blockchain project that had, until recently, promoted a resort linked to Cambodia's Prince Group. Because nothing says "we did our homework" like not checking if your new business partner's vacation destination made the international naughty list.

For those catching up: Prince Group was hit with coordinated U.S. and U.K. sanctions in November for alleged large-scale fraud. Founder Chen Zhi and associates found themselves on the naughty list. The timing? Conveniently awkward—World Liberty announced its integration with AB DAO's USD1 stablecoin right around when those sanctions dropped. It's almost like the sanctions were hiding behind the couch during the partnership announcement.

WLFI claims it carried out due diligence before the partnership. The company told The Times it has "no association or relationship with the sanctioned individuals." To be clear: there's no suggestion WLFI had direct ties to the Prince Group itself. So the good news is that WLFI only accidentally became best friends with a sanctioned fraud operation—totally different from doing it on purpose.

But wait, there's more. The Wall Street Journal reported in January that a company backed by UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan quietly agreed to acquire a 49% stake in WLFI for $500 million—shortly before Trump returned to office. The White House denies any impropriety. Because when your project gets $500 million from a foreign royal right before your co-founder takes office, that's just what the kids call "synergy."

CoinDesk reached out to WLFI for comment. No response at publication time. Truly, the deafening silence speaks volumes.

Another day in the wild world of crypto partnerships, where due diligence apparently requires reading the fine print—and the sanctions lists.