Washington, US: A shareholder of cryptocurrency company Circle Internet Group has filed a lawsuit against US President Donald Trump and World Liberty Financial, alleging that cryptocurrency transactions involving entities linked to the United Arab Emirates violated the US Constitution’s Foreign Emoluments Clause.
The lawsuit, filed on October 22 in the US District Court for the District of Columbia, centres on two financial transactions involving World Liberty Financial, a cryptocurrency business associated with the Trump family, and entities connected to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser.
J. Benjamin Greenberg, a former Circle software engineer and company shareholder, claims the arrangements allowed Trump to benefit financially from foreign-linked transactions while serving as president.
The Foreign Emoluments Clause restricts federal officials from accepting certain financial benefits from foreign governments without congressional approval.
Lawsuit Challenges $500 Million World Liberty Investment
One of the transactions highlighted in the complaint involves a $500 million investment in World Liberty Financial by an entity backed by Sheikh Tahnoon.
According to the lawsuit, the investment agreement was reached shortly before Trump’s inauguration in January 2025 and involved acquiring a 49% ownership stake in the cryptocurrency venture.
Greenberg alleges that Trump received more than $75.5 million from the transaction after assuming office.
The complaint argues that the financial benefits associated with the agreement may constitute prohibited foreign emoluments under the US Constitution.
The allegations have not been established by a court.
$2 Billion Binance Investment Draws Legal Scrutiny
The second transaction involves a $2 billion investment in cryptocurrency exchange Binance by an Abu Dhabi investment fund chaired by Sheikh Tahnoon.
The investment was completed using USD1, a US dollar-backed stablecoin issued by World Liberty Financial.
According to the complaint, the use of USD1 in the transaction benefited World Liberty’s cryptocurrency operations and potentially increased the value of Trump’s financial interests in the business.
Greenberg alleges that the arrangement was designed to strengthen demand for USD1 while generating financial advantages for the Trump-linked company.
The lawsuit also claims that the transactions diverted potential business away from Circle, which operates the competing USDC stablecoin.
Greenberg is pursuing the case as a shareholder derivative lawsuit, seeking legal remedies on behalf of Circle.
Circle Distances Itself From Legal Action
Circle has clarified that it was not involved in initiating or authorizing the lawsuit.
A company spokesperson told CNBC that Circle had not directed, approved, or participated in the legal filing.
Greenberg previously worked as a software engineer at Circle and received part of his compensation through company equity.
His complaint argues that the alleged financial arrangements gave World Liberty Financial an unfair competitive advantage and negatively affected Circle’s business interests.
Despite the shareholder’s claims, Circle has maintained that the legal proceedings were initiated independently.
Lawsuit Also Names US Middle East Envoy Steve Witkoff
The legal action names several defendants, including World Liberty Financial, its affiliated holding companies WLF Holdco and Stablecoin Holdco, and DT Marks DEFI LLC, an entity through which the Trump family receives revenue associated with World Liberty.
Steve Witkoff, the US special envoy to the Middle East, is also named in the complaint over allegations that he helped facilitate the disputed arrangements.
The lawsuit further references decisions by the Trump administration that Greenberg believes benefited the president’s business interests.
Among them is the US Commerce Department’s 2025 authorization for the sale of advanced Nvidia artificial intelligence chips to an Abu Dhabi technology company chaired by Sheikh Tahnoon.
The complaint also highlights conditional approval granted in August by a US Treasury banking regulator for a World Liberty-linked trust bank involving Trump family interests and UAE-linked investors.
These regulatory decisions are cited as part of the plaintiff’s broader allegations and do not independently establish wrongdoing.
Shareholder Seeks Disclosure and Recovery of Profits
Greenberg is asking the federal court to determine whether Trump’s financial gains from the transactions violated the Foreign Emoluments Clause.
The complaint seeks a detailed accounting of payments and financial benefits allegedly received from foreign government-linked entities.
It also requests disclosure of additional cryptocurrency-related benefits involving foreign sources and the return of profits that the court determines were obtained unlawfully.
The legal action could bring greater scrutiny to the relationship between US political figures, cryptocurrency businesses, and international investment entities.
White House and World Liberty Reject Allegations
The White House has dismissed the lawsuit, rejecting suggestions that the president’s cryptocurrency interests created conflicts of interest.
White House spokesperson Anna Kelly described the legal action as politically motivated and maintained that no conflicts of interest existed.
World Liberty Financial also rejected the accusations.
Company spokesperson David Wachsman told CNBC that the allegations lacked merit and said the company was prepared to challenge them in court.
A spokesperson for Witkoff did not immediately respond to CNBC’s request for comment.
The dispute comes amid growing attention to the intersection of cryptocurrency, international investment, and political financial interests.
With the lawsuit now before a federal court, the central questions include whether the transactions involved constitutionally prohibited foreign benefits, whether Greenberg has legal standing to pursue the claims on Circle’s behalf, and whether any resulting profits must be returned.
