A new World Liberty lawsuit argues that President Trump broke the Constitution by profiting from two crypto deals backed by the United Arab Emirates. The twist is who filed it: a former engineer at Circle, which issues the rival USDC stablecoin and says it competes directly with Trump’s crypto venture.
Key takeaways
- On 22 October 2026, Circle shareholder J. Benjamin Greenberg sued Trump, World Liberty Financial (WLF) and envoy Steve Witkoff in federal court in Washington, D.C.
- The suit names two alleged foreign emoluments: money from a UAE-backed purchase of a 49% stake in WLF, and a $2 billion UAE investment in Binance paid in WLF’s USD1 stablecoin.
- It asks the court to declare the profits unconstitutional, order an accounting and block further foreign payments without congressional consent.
- Circle says it did not start or join the case. The White House says there are no conflicts of interest.
What does the World Liberty lawsuit actually claim?
The core claim rests on the Foreign Emoluments Clause. That part of the Constitution bars anyone holding federal office from accepting gifts, payments or other benefits from a foreign state unless Congress agrees.
According to Spectrum News, the complaint says Trump received more than $75.5 million after taking office from the sale of part of WLF to a firm backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser. The second alleged emolument is the use of USD1 by a Tahnoon-chaired, government-created fund to pay for a $2 billion stake in Binance, the world’s largest crypto exchange.
“We’re suing to stop the corruption and to force President Trump to return the profits to American taxpayers,” attorney Matt Pelikan told CNBC, which first reported the filing.
The deals at the centre of the case
Here is what the suit points to, and where each piece was first reported.
| Deal or decision | When | What the suit says |
|---|---|---|
| Aryam Investment 1 buys 49% of WLF for $500 million | Signed January 2025, days before the inauguration | Trump took more than $75.5 million from it after taking office |
| MGX pays for a $2 billion Binance stake in USD1 | Announced May 2025 | A foreign state fund boosted a Trump-linked coin |
| Commerce approves Nvidia AI chip sales to an Abu Dhabi firm chaired by Tahnoon | 2025 | Cited as related government action |
| Conditional approval of a WLF trust bank | August 2026 | Cited as related government action |
The stake sale came to light through Wall Street Journal reporting, summarised by The Block: $250 million was paid upfront, and $187 million of that went to Trump-family entities. WLF has said Trump had no involvement in the deal. The USD1 choice for the Binance investment was announced in May 2025 by WLF co-founder Zach Witkoff, son of Steve Witkoff.
Why is a Circle shareholder the one suing?
This is the clever part. Greenberg worked at Circle from January 2016 to September 2018 and got equity as part of his pay. He filed what is known as a derivative suit: a case a shareholder brings on behalf of a company that has not sued itself.
The theory is about competition. A stablecoin is a crypto token designed to hold a steady value, usually $1, and issuers earn money on the reserves behind every coin. If a state fund parks $2 billion in USD1 rather than USDC, that is business Circle could have had. The suit says the UAE money diverted business from Circle and harmed its shareholders. It also accuses WLF’s holding companies of intentionally disrupting Circle’s business.
Think of it like a corner shop suing a rival that got a sweetheart supply contract from a foreign government. The harm is commercial, and that gives the plaintiff a concrete injury to point to.
Haven’t emoluments suits against Trump failed before?
Yes, mostly on procedure rather than merits. During Trump’s first term, watchdog group CREW, the attorneys general of Maryland and D.C., and about 200 members of Congress all sued. In 2019 a Fourth Circuit panel ruled that Maryland and D.C. lacked standing, meaning they had not shown the kind of direct injury a court needs to hear a case. The remaining cases ended as moot after he left office in January 2021.
So no court has ruled on whether any Trump payment was an illegal emolument. Picking a plaintiff with a direct competitive loss looks like a deliberate attempt to clear the hurdle that tripped up the earlier cases.
How have Trump, WLF and Circle responded?
White House spokesperson Lauren Bis told Spectrum News: “President Trump’s assets are in a trust. There are no conflicts of interest.” WLF has said Trump had no involvement in the equity deal and no longer holds a position at the company. Circle told CNBC it did not initiate or join the suit.
The numbers explain why the case has drawn attention. In July 2026, Trump disclosed about $1.2 billion in 2025 income from crypto businesses, including $526 million from WLF, Spectrum reports.
What happens next
Expect a motion to dismiss first. The defendants will likely argue that a former employee holding Circle stock cannot sue for harm to the company, and that a sitting president should not face this kind of suit. A ruling on standing will decide whether the court ever reaches the constitutional question.
If the case survives, discovery is the big prize. The complaint asks for an accounting of foreign payments, which could force disclosures about who holds USD1 and where WLF money went. My view: the competition angle is the most credible standing argument any emoluments plaintiff has tried, but the derivative structure, without Circle on board, is a weak spot. For context on how crypto regulation is shifting in Washington, see our piece on Terry Duffy’s warnings about the CFTC.
FAQ
What is the Foreign Emoluments Clause?
It is a provision in Article I of the Constitution that bars federal officeholders from accepting payments, gifts, offices or titles from a foreign state without the consent of Congress.
Is Circle suing Trump?
No. A former Circle engineer who owns its shares filed the suit on the company’s behalf. Circle told CNBC it did not initiate or join the case.
What is USD1?
USD1 is a dollar-pegged stablecoin issued by World Liberty Financial. Abu Dhabi fund MGX used it to pay for its $2 billion Binance investment in 2025, which made it one of the largest stablecoins almost overnight.
Want to see how Gulf capital is reshaping tech and finance more widely? Read our breakdown of the pressures on Saudi Vision 2030 next.
This article is for information only and is not investment advice.
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