World Liberty Financial, a crypto firm associated with the Trump family, has come under scrutiny after forming a partnership with a blockchain network called AB shortly after major US sanctions targeted more than 140 individuals and entities linked to what authorities described as a large Asian criminal syndicate.
According to reporting from the Wall Street Journal, AB’s activities may be connected to individuals later named in the sanctions, raising concerns about the level of due diligence conducted in the deal.
Controversial Partnership Raises Questions
The agreement, announced on November 12, 2025, granted AB the ability to support World Liberty’s USD1 stablecoin on its blockchain infrastructure. AB described the partnership publicly as a step forward for its decentralized finance and payments ecosystem.
However, the Wall Street Journal reported that AB had also been involved in promoting a planned blockchain themed resort in East Timor, which allegedly had links to individuals recently sanctioned by the US Treasury Department.
That resort venture, operated under AB Digital Technology Resort, was reportedly majority owned by Yang Jian, a Cyprus based individual sanctioned for allegedly assisting Prince Group leadership in developing luxury projects described by US authorities as exploitative investments. Two other executives connected to the project, Yang Yanming and Shih Ting yu, were also sanctioned. All three were later removed from the company following the sanctions announcement, and none have been formally charged.
The broader network under scrutiny includes Prince Group, which US officials allege operated multiple scam compounds and was involved in large scale “pig butchering” schemes, where victims are manipulated through long term online relationships before being defrauded of funds.
Disputed Connections and Responses
AB presents itself as a decentralized organization with entities registered in Ireland and the Cayman Islands. However, investigators identified two key individuals said to be central to its operations: Sui Chenggang, the beneficial owner of its Cayman entity, and Lin Xiaofan, an entrepreneur originally from Guangdong who reportedly introduced Sui to World Liberty representatives.
Sui signed a memorandum of understanding with World Liberty in September 2025 and has stated that the East Timor resort project was never discussed during those negotiations.
World Liberty’s legal representatives maintain that proper due diligence was conducted and that the company had no knowledge of the resort project or the individuals linked to it until early 2026. They also rejected any suggestion of wrongdoing, calling claims of connections to sanctioned individuals inaccurate.
AB has stated separately that the resort initiative stemmed from a different agreement that was later canceled before any major development began.
Ongoing Legal and Regulatory Scrutiny
The controversy adds to growing scrutiny around World Liberty Financial’s operations. The company is also facing a legal dispute with Justin Sun, who alleges that WLFI representatives improperly froze and threatened to destroy his tokens. World Liberty has denied the allegations, stating that the matter will be resolved in court.#cryptp#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
