A Circle shareholder has filed a federal lawsuit in Washington targeting two major UAE-linked crypto transactions, alleging that these deals violated the US Constitution’s Foreign Emoluments Clause and unfairly benefited President Donald Trump through business ties to World Liberty Financial.
Complaint focuses on UAE-backed crypto deals
J. Benjamin Greenberg, a former Circle employee and current shareholder, initiated the legal action as a derivative complaint on behalf of Circle, the company that operates USDC, a leading dollar-backed stablecoin. The lawsuit names Donald Trump, World Liberty Financial, US Middle East special envoy Steve Witkoff, and four related limited liability entities as defendants. Greenberg claims that these foreign-backed deals gave World Liberty’s dollar-based stablecoin, USD1, an unfair competitive edge over USDC, to the detriment of Circle and its investors.
Derivative lawsuits allow shareholders to pursue claims that aim to protect the interests of the company rather than seeking personal compensation. In this case, Greenberg alleges that the competitive pressure from USD1, promoted through the challenged deals, caused financial harm to Circle.
Greenberg’s lawsuit highlights two key transactions. The first involves the sale of a 49% stake in World Liberty Financial for $500 million. This acquisition was reportedly backed by a vehicle linked to Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser, just days before Trump’s January 2025 inauguration. The complaint claims these funds represent foreign state money flowing to a business tied to Trump, resulting in potential profits after he took office.
The second transaction centers on a $2 billion investment in Binance, funded by Abu Dhabi’s MGX fund, chaired by Sheikh Tahnoon. According to the complaint, this investment was settled in USD1 stablecoin rather than traditional currency, further bolstering the position of World Liberty’s stablecoin.
Greenberg maintains that both transactions elevated the profile and value of USD1, thereby supporting Trump’s personal and business interests in the crypto sector via World Liberty Financial.
Mini dictionary: World Liberty Financial is a privately held fintech firm known for developing the USD1 stablecoin, a digital asset pegged to the US dollar and intended for global settlement and payments, positioning itself as a competitor to USDC.
| Transaction | Party Involved | Amount | Asset Used |
|---|---|---|---|
| World Liberty Stake Sale | Sheikh Tahnoon (UAE) | $500 million | 49% equity |
| Binance Investment | MGX Fund (UAE) | $2 billion | USD1 stablecoin |
Allegations of emoluments breaches and calls for accountability
The Foreign Emoluments Clause prohibits federal officials from receiving financial benefits from foreign governments without congressional approval. Greenberg is asking the court to declare that Trump’s profits from the transactions breached this constitutional restriction. The suit requests that Trump be ordered to return any illicit gains and demands full disclosure of any additional foreign crypto payments associated with the companies in question. Greenberg does not specify the total damages sought, as the amount would depend on the court’s evaluation of the case.
Circle clarified that it had no involvement in the lawsuit and did not approve or participate in the action. The company emphasized that Greenberg was acting independently as a shareholder. World Liberty Financial spokesperson David Wachsman disputed the allegations, describing them as unfounded and stating the company planned to respond through the legal process. White House spokeswoman Anna Kelly dismissed the case, arguing it was frivolous and denied that any conflicts of interest occurred. Steve Witkoff, named as US Middle East special envoy and a defendant, did not comment when contacted by reporters.
Greenberg contends that World Liberty’s UAE-backed transactions with USD1 stablecoin not only harmed Circle’s competitive position but also allegedly provided illegal profits and advantages to Trump and his business associates.
Ongoing case and additional investigations
The legal complaint notes that Trump co-founded World Liberty Financial with his sons before entering office, and later ceased active participation in the company in 2025. Alongside the core allegations, Greenberg’s filing highlights concerns over US policies permitting advanced AI chip exports to the UAE and Trump’s pardon of Binance founder Changpeng Zhao, although the direct relation to the crypto deals remains alleged and unproven.
The case is pending under the name Greenberg v. Trump, 26-cv-03686, at the US District Court for the District of Columbia. No judgment or resolution has yet been reached regarding the claims.
