A shareholder of Circle Internet Financial, the company that issues the USDC stablecoin, has filed a lawsuit targeting US President Donald Trump, his family’s crypto venture World Liberty Financial, several affiliates, and US Special Envoy to the Middle East Steve Witkoff over a $2 billion transaction involving a foreign entity and cryptocurrency exchange Binance.
Allegations of harm to Circle and the role of World Liberty
The lawsuit, filed Thursday in the US District Court for the District of Columbia by Circle shareholder J. Benjamin Greenberg, accuses Trump, Witkoff, and World Liberty Financial of damaging Circle’s business interests by creating what Greenberg described as a mechanism for foreign governments to move funds using USD1, the stablecoin operated by the Trump family-owned company.
Greenberg stated that this “brazen corruption” left Circle unable to compete effectively in the stablecoin sector against USD1, given the alleged involvement of state-linked capital channeled through World Liberty.
The central focus of the case is an Abu Dhabi entity known as MGX, which maintains close ties to United Arab Emirates royalty. The complaint alleges MGX invested $2 billion into Binance using USD1 in 2025, an action the shareholder claims distorted the competitive landscape for US stablecoin issuers.
Separately, The Wall Street Journal reported in February that an investment fund backed by Sheikh Tahnoon bin Zayed Al Nahyan agreed to buy a 49% stake in World Liberty Financial for $500 million, signaling further international entanglements for the Trump-affiliated venture.
World Liberty Financial is a digital asset company co-founded by Trump and his three sons, as well as Zach Witkoff, the son of Steve Witkoff, who is also named in the lawsuit.
Mini dictionary: MGX, an investment vehicle reportedly based in Abu Dhabi, is closely associated with ruling family interests in the United Arab Emirates. The company has made sizable investments in the global cryptocurrency sector, including significant funding into crypto exchanges.
Greenberg claimed, “By accepting hundreds of millions of dollars from a foreign government, the President and his companies have diverted business from Circle.”
Greenberg, who holds 10,000 ordinary shares of Circle, has requested the court declare that Trump violated the US Constitution’s Foreign Emoluments Clause by participating in these crypto transactions. He is also seeking an injunction barring both Trump and Witkoff from engaging in similar activities without Congressional approval.
A Circle spokesperson stated that the company “did not initiate, direct, authorize, or participate in the filing,” and declined to discuss ongoing litigation. Representatives for World Liberty and the White House did not provide comment.
Political implications ahead of the 2026 midterm elections
Trump and his family are connected to multiple cryptocurrency initiatives that, according to the nonprofit group Public Citizen, produced $1.4 billion for them in 2025, while investors faced estimated losses of $4.7 billion. These crypto deals are among several controversial financial undertakings associated with Trump, including reported gifts such as a jet from Qatar’s government.
With the 2026 midterm elections approaching and early voting already underway in numerous states, Democratic candidates are emphasizing Trump’s crypto business activities in their campaigns. Senator Mark Warner released an ad last week focusing on the president’s reported earnings, including “more than $600 million alone from the crypto memecoin.”
