Trump Crypto Company Backs Chinese AI Venture Despite U.S. Restrictions: What We Know

World Liberty Financial, the cryptocurrency venture backed by President Donald Trump, is collaborating with WorldClaw, a Hong Kong-based platform offering access to artificial intelligence models, including models developed by Chinese technology companies that have faced U.S. government restrictions, according to a Reuters review published Monday.

The partnership allows WorldClaw users to pay for access to AI models with World Liberty’s USD1 stablecoin. The arrangement has drawn attention because the Trump family has a financial stake in World Liberty while the administration has taken steps to restrict or scrutinize some Chinese technology companies on national security and other grounds.

It could not determine the specific financial terms between World Liberty and WorldClaw or how much revenue the Trump family has received from payments made through the platform.

According to Reuters, 43 of the 90 AI models listed on WorldClaw were developed by Chinese companies, including Alibaba, Baidu and Z.ai. The platform also offers models developed by U.S. companies, including OpenAI and Anthropic.

WorldClaw was founded earlier this year. Its relationship with World Liberty centers on USD1, which WorldClaw users can select as a payment method when accessing the AI models offered on the platform.

The use of USD1 does not necessarily mean World Liberty has a direct commercial relationship with every company whose AI model is listed on WorldClaw. World Liberty and WorldClaw have said the two businesses operate independently and that the presence of a model on the platform does not represent an endorsement of the company that developed it.

Why Some Chinese AI Companies Face U.S. Restrictions

The Chinese companies have faced different forms of scrutiny or restrictions from the U.S. government.

Alibaba and Baidu have been identified by the U.S. Department of Defense as companies linked to China’s military, while Z.ai is subject to restrictions imposed by the U.S. Commerce Department. The restrictions and designations involve different U.S. authorities and legal mechanisms and should not be treated as equivalent measures.

The U.S. government has cited national security and technology-related concerns in imposing restrictions on Chinese companies. The specific implications for each company depend on the government designation or restriction involved.

How the Trump Family Could Benefit

World Liberty earns revenue from activity involving its USD1 stablecoin. USD1 is a dollar-pegged cryptocurrency backed by assets including U.S. government securities, according to information cited in the Reuters report.

The Trump family owns a significant stake in World Liberty. As a result, the family’s financial interests could be affected by the company’s business activity, including use of its stablecoin.

It could not determine how much the Trump family has earned from USD1 transactions conducted through WorldClaw or the specific financial terms of the partnership.

Trump’s two eldest sons have publicly promoted WorldClaw and that a World Liberty executive has served as an adviser to the platform.

Experts Raise Conflict-of-Interest Questions

Seven experts in Chinese technology, trade and government ethics told Reuters that the relationship raises questions about the administration’s approach to Chinese technology and the potential financial interests involved.

Sam Bresnick, a fellow at Georgetown University’s Center for Security and Emerging Technology, questioned the contrast between the administration’s approach to Chinese AI and the commercial relationship involving World Liberty.

“As the U.S. government tries to respond to the rise and threat of Chinese AI, it seems hypocritical to go out through WorldClaw to use these tools from China to try and make a bunch of money,” Bresnick told Reuters.

Peter Jeydel, an attorney who leads the sanctions and trade controls team at Troutman Pepper Locke in Washington, said the arrangement reflects competing policy and commercial considerations within the administration.

“On one hand, people could say this is a China-hawk administration, and there is a tension with this type of business collaboration,” Jeydel told Reuters. “On the other hand, it can be argued that this Trump presidency has been less aggressive in targeting Chinese companies in favor of a business-first approach.”

The comments represent expert assessments rather than findings that the partnership violates U.S. law.

World Liberty and White House Respond

World Liberty and WorldClaw defended their relationship, saying the companies operate independently and that offering an AI model through WorldClaw does not constitute an endorsement of the company that developed it.

White House spokesperson Anna Kelly said there are “no conflicts of interest” in the relationship between World Liberty and WorldClaw and said Trump “only acts in the best interests of the American public,” according to Reuters.

The White House has previously maintained that Trump and his family do not have conflicts of interest related to his business activities.

Trump Family’s Broader Crypto Interests

World Liberty Financial has faced scrutiny since its launch because of its connections to the Trump family.

Trump’s latest annual financial disclosure showed he received about $515 million from sales of World Liberty tokens and another $65 million from equity sales in the company’s holding firm.

Democratic lawmakers, including Sen. Elizabeth Warren, have previously questioned the venture’s oversight and its exposure to potentially sanctioned or high-risk actors.

The WorldClaw relationship adds another issue to that scrutiny by connecting a Trump family-backed cryptocurrency business with a platform that distributes AI models from Chinese companies that have faced U.S. government restrictions.

The financial terms of the WorldClaw partnership, including the amount of revenue generated through USD1 payments, remain unclear. Further disclosures or statements from World Liberty, WorldClaw or U.S. authorities could clarify the extent of the business relationship and any financial benefit to the Trump family.