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World Liberty Financial, the cryptocurrency firm connected to Donald Trump, has invested millions of dollars into Falcon Finance.

Falcon Finance is a firm that issues a stablecoin that was founded by Andrei Grachev, who has a long history in the crypto industry, previously serving as the head of Huobi Russia.

DWF Labs-backed USDf depegs as red flags raised over quality of backing

Since then, Grachev has founded DWF Labs, a self-described market maker that also tends to advertise aggressive price and volume targets to its clients; at one point its wash trades even reportedly drew the attention of Binance's investigation team.

However, what's especially fascinating about the World Liberty investment is that, according to reporting from The Nation, Grachev also has a criminal past.

He pleaded guilty to fraud in Russia, related to a scheme involving setting up a fake logistics firm and stealing the goods that were supposed to be shipped.

Besides that, he's also promoted OneCoin, another fraud, and has been accused of being connected to other shady enterprises.

Despite these obvious issues, for some reason the crypto firm advised by a fraudster has decided that investing in a fraudster is a good use of its funds.

— Bennett Tomlin