According to a Reuters report published on Monday, the crypto company World Liberty Financial, backed bydent Donald Trump, is linked to WorldClaw, a Hong Kong-based platform providing access to Chinese artificial intelligence models which the U.S. government has labeled security threats.
WorldClaw AI's Menu Features Chinese Labs Flagged as Problematic
The WorldClaw routing platform features a catalog of about 90 AI models, with 43 of them, according to a Reuters review, developed by Chinese companies including Alibaba, Baidu, Z.ai, DeepSeek, and Moonshot. OpenAI and Anthropic models are also available on the platform.
Some of these Chinese firms have specific designations set by the U.S. government regarding their use. The U.S. Department of Defense named Alibaba and Baidu as companies linked to the Chinese military, prohibiting the Pentagon from engaging with them in any capacity.
The company Z.ai, previously known as Zhipu AI, is on the U.S. Commerce Department's sanctions list, limiting its access to U.S. technology and requiring U.S. firms to obtain an export license, which is typically denied. The government listing Z.ai in the development of China's military capabilities through advanced artificial intelligence.
DeepSeek and Moonshot round out the names of AI development companies. Trump administration officials have accused both companies of building their systems based on intellectual property stolen from American competitors. However, Moonshot denies these allegations.
Stablecoin $USD1 is the Connection
WorldClaw accepts $USD1, World Liberty's dollar-pegged stablecoin, as payment for its services on the platform. $USD1 is backed by various assets, including U.S. Treasury securities, and the Trump family is entitled to a portion of the interest earned from these reserves. Every purchase made using the $USD1 stablecoin helps support the WLFI project, partially owned by the Trump family.
Token sales in World Liberty have brought the Trump family more than $1.4 billion, which is part of the total amount the Trump family has received from cryptocurrency. The company recently received preliminary approval in the U.S. to establish a national bank based on the same $USD1 stablecoin.
It is also worth noting that Ryan Fang, World Liberty's head of development, previously advised WorldClaw in a role that the AI platform described as purely advisory and focused on integrating $USD1 and expanding access to AI services. Donald Trump Jr. and Eric Trump have also previously promoted WorldClaw on X.
Risks Even Greater Than Trade Policy Risks
Senior Fellow at the Center for a New American Security, who previously advised the State Department, Daniel Remler, warned that the Chinese models available on WorldClaw could subject users to surveillance by the Chinese government and contain malicious code capable of potentially hacking independent agentsdent intelligence.
On its website, WorldClaw also states that user-inputted information may be shared with the companies whose models underpin the platform.
The WorldClaw platform claims to have over 10,000 users and processes over 50 million queries per day, partly due to the lower cost of Chinese models. Using these models generally remains legal for private individuals and companies in the U.S.
Both Sides Claim 'No Conflict of Interest'
Both companies strongly rejected the common perception that this link constitutes a conflict of interest. David Waxman, a World Liberty spokesperson, stated that WorldClaw isdent company, and noted that major American firms also resell Chinese-developed AI systems. A WorldClaw spokesperson said the platform "helps American AI companies go to the international market" and that model listings on the platform do not "constitute an endorsement of their developer"
The White House used similar reasoning. Press Secretary Anna Kelly stated there was "no conflict of interest" in these relationships and that "dent Trump acts solely in the interest of the American public"
However, external experts are not as convinced. "At a time when the U.S. government is trying to counter the rise and threat of Chinese AI, it seems hypocritical to use tools from China via WorldClaw to make a pile of money," said Sam Bresnick, a Research Fellow at Georgetown University's Center for Security and Emerging Technology.
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