Circle Shareholder Sues Trump Over UAE Crypto Deals

A New Federal Lawsuit Targets Presidential Crypto Deals

Politics and cryptocurrency have crossed paths once again in a major way. On Thursday, a shareholder in Circle Internet Group named J. Benjamin Greenberg filed a federal lawsuit against US President Donald Trump and World Liberty FinancialWLFI+0.36%.

The lawsuit was officially filed in the US District Court for the District of Columbia under the case name Greenberg v. Trump. At its core, the legal complaint alleges that two major transactions linked to the United Arab Emirates (UAE) violated a key rule in the US Constitution known as the Foreign Emoluments Clause.

Greenberg argues that these presidential crypto business interests created an unfair market advantage over industry competitors. Specifically, he claims this hurt competitors like Circle, whose USDCUSDC+0.18% stablecoin competes directly with World Liberty's USD1 stablecoin.

What Is the Foreign Emoluments Clause?

To understand this legal action, it helps to look at the rule behind it. The Foreign Emoluments Clause is a standard in the US Constitution that restricts American presidents from accepting payments or gifts from foreign governments without getting approval from Congress first.

In his complaint, Greenberg alleges that the President breached this constitutional provision through foreign crypto deals. He claims these actions financially harmed Circle shareholders through unfair competition.

The Two UAE Transactions Under Scrutiny

The lawsuit focuses directly on two high-profile deals connected to the United Arab Emirates:

• A $500 million transaction involving the sale of a 49% stake in World Liberty to an investment vehicle backed by a member of the UAE ruling family.
• The use of USD1 by Abu Dhabi-based firm MGX to finance a massive $2 billion investment into Binance.

The filing contends that these transactions allowed millions of dollars in payments linked to a foreign government to flow into business ventures associated with the sitting President.

Strong Statements from the Legal Complaint

Greenberg expressed severe concerns about these business arrangements directly inside the legal court documents.

This action is about the President of the United States corruptly profiting from more than $2 billion in payments from a foreign government in direct violation of the constitution.

The filing goes on to claim that no president in American history has profited from his office so brazenly.

To resolve these issues, Greenberg is asking the federal court to grant several remedies:

• A court order preventing President Trump from continuing to violate the Foreign Emoluments Clause.
• The return and disgorgement of all allegedly illegal profits generated by these deals.
• Unspecified financial damages to compensate affected parties.

It is worth pointing out that Greenberg brought this case as an individual shareholder seeking recovery on Circle's behalf. It was not filed as a corporate lawsuit initiated directly by Circle.

How World Liberty, the White House, and Circle Responded

Responses to the new lawsuit came in quickly from all parties involved.

According to a report by Bloomberg, World Liberty rejected all allegations in the suit. Company spokesperson David Wachsman stated that the claims were without merit and emphasized that the company operates in full compliance with US laws and regulations.

A White House spokesperson also denied that President Trump had any conflicts of interest, officially dismissing the lawsuit as frivolous.

Meanwhile, Circle quickly clarified its own position. The company confirmed that it did not initiate, direct, authorize, or participate in the legal filing in any manner.

Broader Context: Ongoing Scrutiny Over Crypto Ventures

This lawsuit comes amid broader political discussions surrounding presidential involvement in digital asset businesses. Last year, official financial disclosures showed that the President earned over $1 billion from crypto-related ventures, including World Liberty.

These earnings faced criticism from Democrats in Congress. This political backlash was cited as a primary reason for stalling the CLARITY Act, a proposed federal bill meant to establish clear market-structure regulations for the broader crypto sector.

In addition, consumer advocacy groups have published reports analyzing the financial performance of these projects. Back in August, consumer advocacy group Public Citizen estimated that ventures tied to the President and his family had left investors at least $4.7 billion underwater since 2022, with the vast majority consisting of unrealized paper losses.

Public Citizen broke down those estimated losses as follows:

• The TRUMP meme coin accounted for approximately $3.2 billion in unrealized losses.
• The WLFI token accounted for roughly $1 billion in unrealized losses.
• The USD1 stablecoin showed no estimated losses according to the report.

As with any newly filed legal case, the allegations in Greenberg v. Trump have yet to be reviewed or decided by a judge.

Please remember that past performance of any cryptocurrency or digital asset is not a guarantee of future performance. Market conditions can change rapidly, so investors should always evaluate risks carefully.