A recent investigation by the Wall Street Journal has unveiled a troubling connection between World Liberty Financial (WLF), a cryptocurrency venture linked to the Trump family, and a virtual currency company known as AB. This revelation raises numerous questions about the integrity and oversight of the project, especially given that AB’s key figures were sanctioned by the U.S. Treasury for their alleged involvement in a notorious transnational pig butchering scam network that has reportedly defrauded Americans of billions.
The partnership between WLF and AB was initiated shortly after the U.S. government’s sanctions on October 14. These sanctions implicated more than 140 individuals and companies in activities linked to the Prince Group, a criminal organization alleged to have orchestrated pig butchering operations across multiple locations, including Cambodia. According to the investigation, WLF’s USD1 stablecoin now operates on AB’s infrastructure, compounding concerns about due diligence in the cryptocurrency sector.
Chase Herro and Zachary Folkman, both crucial figures in WLF’s strategy, are now under investigation by the Department of Justice (DOJ) for their previous ventures, Yield Game and Dough Finance, which are suspected of having connections to the same fraudulent network. Blockchain forensic analysis has reportedly revealed transactions that trace back from wallets used by WLF’s early development team to accounts linked to the alleged money-laundering operations of the scam network. Moreover, WLF is said to have hired several consultants who previously worked with defunct entities now under federal scrutiny.
While Herro and Folkman have not been officially charged with any crimes, the implications of the investigation are significant. WLF’s legal representatives claimed that they were unaware of AB’s troubled history until January 2026—two months after the partnership was publicly announced.
At the heart of this scandal is the so-called pig butchering scheme, a long-con fraud method in which operators, often exploiting enslaved individuals, forge online relationships to lure victims into fake cryptocurrency investments. The Justice Department has described the Prince Group as operating at least ten violent scam compounds in Cambodia, utilizing this deceptive tactic.
The ties between WLF and AB are particularly concerning because the latter company is linked with a blockchain-themed resort in East Timor. Key figures at AB, Yang Jian and Yang Yanming, were among those named in the Treasury’s sanctions for their reported roles in the Prince Group operations. Although AB moved to sever ties with these individuals soon after the sanctions were announced, WLF’s partnership with AB was established shortly thereafter.
The ramifications of these findings could extend beyond mere reputational damage for WLF, especially if blockchain forensic evidence substantiates the connection between WLF’s development infrastructure and the laundering operations of the scam ring. Such links could lead to broader ramifications of sanctions evasion and potential federal fraud charges.
WLF was launched in 2024 as a decentralized finance lending and governance protocol, boasting the Trump family’s backing, which instantly provided it with significant visibility. Its primary offering, the USD1 stablecoin, was designed for interoperability across different blockchain platforms.
While there is no evidence to suggest that Donald Trump or his family were aware of any wrongdoing associated with WLF’s partners, the investigation highlights serious lapses in regulatory due diligence. The simultaneous sanctioning of over 140 entities on the day WLF announced a partnership with two sanctioned individuals raises questions about the processes in place for vetting potential collaborators.
The political dimensions of this situation further complicate matters. Cryptocurrency companies with political connections face a higher threshold of scrutiny from regulators and media alike. For WLF, the association with the Trump name could amplify this scrutiny, leaving the venture exposed to increased public and governmental attention amidst emerging legal challenges.
