Circle Shareholder Sues Trump and WLFI Over Alleged $2B UAE Crypto Scheme

The intersection of high finance, digital assets, and constitutional law is facing a major test. A prominent crypto shareholder has officially filed a federal lawsuit against President Donald Trump and his family's blockchain venture. 

The legal action targets multi billion dollar deals linked to the United Arab Emirates, raising critical questions about foreign influence and presidential conduct. 

This prominent case, involving the USD1 stablecoin, brings the intense scrutiny surrounding World Liberty Financial into sharp focus.

Key Takeaways

• A Circle shareholder filed a federal lawsuit against Trump and WLFI.
• The suit alleges violations of the Foreign Emoluments Clause.
• The case centers on a $500 million equity deal and a $2 billion stablecoin purchase.

The Core Allegations and Key Players

The legal complaint was filed in a Washington federal court by J. Benjamin Greenberg, a software engineer who previously worked for Circle Internet Group. Greenberg owns approximately 10,000 shares of Circle stock. 

He is bringing the lawsuit in the company's name through a legal mechanism known as a shareholder derivative suit.

The defendants named in the World Liberty Financial lawsuit include Donald Trump, the venture itself, its holding companies, and Steve Witkoff in his capacity as the U.S. special envoy to the Middle East. 

The lawsuit asserts that the conduct violates the Foreign Emoluments Clause of the U.S. Constitution. This clause forbids federal officeholders from accepting money or other benefits from foreign governments without the consent of Congress.

Read also: WLFI Adopts Chainlink CCIP Vault Adapters for 1-Click Cross-Chain Deposits

Breaking Down the Trump UAE Crypto Lawsuit Deals

The Donald Trump emoluments clause lawsuit focuses heavily on two specific transactions involving Sheikh Tahnoon bin Zayed Al Nahyan, the national security adviser to the United Arab Emirates.

The first transaction occurred just days before Trump's inauguration in January 2025. An entity backed by Sheikh Tahnoon agreed to purchase a 49% stake in World Liberty Financial for $500 million. 

The complaint alleges that Trump received more than $75.5 million from this transaction after taking office. While the company previously stated that Trump had no direct involvement in the deal, his financial disclosures indicate he profited from the arrangement.

The second transaction involves an Abu Dhabi investment fund chaired by Sheikh Tahnoon. The fund invested $2 billion into the crypto exchange Binance, settling the payment in World Liberty's USD1 stablecoin. 

The lawsuit describes this purchase as a scheme designed to inflate the value of President Trump's crypto holdings. It alleges that this move dramatically expanded the circulation of the stablecoin overnight.

The Circle vs World Liberty Financial Connection

The lawsuit is notable because it pits a shareholder of Circle Internet Group against a major competitor. Circle is a publicly traded crypto company, while World Liberty Financial is the crypto firm launched by Trump and his sons. 

Greenberg claims that the foreign payments diverted money away from Circle's business.

Despite the lawsuit being filed on its behalf, Circle has distanced itself from the action. A company spokesperson stated that Circle did not initiate, direct, authorize, or participate in the filing, and noted that they do not comment on pending litigation.

Read also: World Liberty Financial Staking Timeline: What to Expect by October 2026

Reactions from the White House and WLFI

The WLFI lawsuit has generated strong reactions from the defendants. David Wachsman, a spokesperson for World Liberty Financial, stated that the company is compliant with all U.S. laws and regulations. 

He emphasized that no one at the company works for the U.S. government and described the claims as without merit. Bill Burck, counsel for the company, compared the filing to a partisan press release.

White House spokesperson Anna Kelly dismissed the legal action as frivolous. She stated that there are no conflicts of interest and accused the plaintiff of echoing a tired narrative pushed against the President for a decade.

Conversely, Matt Pelikan, an attorney representing Greenberg, argued that what the President did was brazenly corrupt. Pelikan stated that the lawsuit aims to stop the corruption and force the President to return the profits to American taxpayers.

Read also: WLFI Burns $6.68M of Tokens: Can Price Hold $0.07 or Drop to $0.05 Next?

Financial Disclosures and Market Context

The legal challenge arrives during a period of massive financial expansion for the First Family's crypto ventures. Trump reported more than $1.4 billion in crypto income in his 2025 financial disclosure, with nearly $800 million tied to World Liberty.

However, the venture has drawn scrutiny due to the performance of its governance token. The WLFI token reportedly fell from about $45 cents in August 2025 to roughly $5 cents by the end of June 2026. 

Meanwhile, critics point to administration decisions that allegedly benefited UAE entities, such as the Commerce Department's sign off on sales of advanced AI chips to an Abu Dhabi firm chaired by Sheikh Tahnoon.

Greenberg is asking the court to declare that Trump's profits violate the Constitution. The suit seeks an order requiring the President to disclose all other foreign crypto payments, return any profits found to be illegal, and pay unspecified damages.

FAQ

Who is suing Donald Trump and World Liberty Financial?

The lawsuit was filed by J. Benjamin Greenberg, a former software engineer and current shareholder of Circle Internet Group.

What is the Foreign Emoluments Clause?

It is a provision in the U.S. Constitution that prohibits federal officeholders from accepting gifts, payments, or titles from foreign governments without congressional approval.

What transactions are at the center of the lawsuit?

The suit focuses on a $500 million purchase of a 49% stake in WLFI and a $2 billion investment settled using the USD1 stablecoin, both involving entities linked to the UAE.

How did World Liberty Financial respond to the allegations?

A spokesperson stated that the company complies with all U.S. laws, that no one at the company works for the U.S. government, and that the claims are without merit.

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