Circle shareholder J. Benjamin Greenberg sued President Donald Trump, World Liberty Financial and US Middle East envoy Steve Witkoff on October 22 over $2.5 billion in UAE-linked deals. His complaint, filed in federal court in Washington, says the deals broke the Constitution’s Foreign Emoluments Clause and steered business away from Circle’s USDC stablecoin toward World Liberty’s USD1. World Liberty and the White House reject the claims, and the World Liberty Financial (WLFI) token and USD1 continue to trade normally.
What the Lawsuit Claims
The suit alleges that President Trump breached the Constitution’s Foreign Emoluments Clause, which bars federal officeholders from accepting payments from foreign governments without the consent of Congress. It focuses on two deals linked to Sheikh Tahnoon bin Zayed Al Nahyan, a senior member of the UAE’s ruling family:
- The $2 billion investment. MGX, an Abu Dhabi investment firm chaired by Tahnoon, invested $2 billion in a major global crypto exchange and paid in USD1. The suit says settling the deal in USD1 earned World Liberty interest income and raised the value of the Trump family’s crypto holdings.
- The $500 million stake. Aryam Investment 1, which the complaint links to Tahnoon, agreed on January 16, 2025, to pay $500 million for a 49% stake in World Liberty. The complaint alleges that $187 million of the first payment went to two Trump family entities.
Greenberg also contends that settling MGX’s $2 billion corporate investment in USD1 rather than USDC diverted institutional volume away from Circle, establishing the commercial basis for a derivative action on behalf of Circle shareholders.
What is Greenberg’s Request
Greenberg requests the court to declare that Trump’s profits from the two deals are unconstitutional and to bar him from accepting similar payments without congressional consent. He also seeks disclosure of any other foreign crypto payments, repayment of any profits the court finds illegal, and damages.
World Liberty and the White House Response
Counsel representing World Liberty Financial and representatives of the administration dismissed the filing as politically motivated:
- World Liberty Legal Counsel: Bill Burck, partner at Quinn Emanuel Urquhart & Sullivan, stated that the filing “sounds more like a partisan press release than a lawsuit” and asserted that the claims fail on legal merits.
- World Liberty Corporate Spokesperson: David Wachsman affirmed that World Liberty Financial “is compliant with all US laws and regulations” and reiterated that no operational personnel at the firm hold positions in the US government. The company has previously noted that Donald Trump does not manage day-to-day corporate operations.
- The White House: Spokesperson Anna Kelly characterized the complaint as “yet another frivolous lawsuit” and maintained that no conflicts of interest exist regarding the administration’s official duties.
What the Case Means for WLFI and USD1 Holders
The lawsuit does not freeze, pause or change USD1 or WLFI, and both continue to trade. A court ruling could be years away.
WLFI traded at $0.053 on October 26, down 1.4% over 24 hours and about 88% below its September 2025 high of $0.46. About $3.9 billion in USD1 circulates, according to CoinMarketCap. DefiLlama data shows USD1 supply down about 10% over the past 30 days, and 26 of those 30 days came before the lawsuit was filed.
Emoluments lawsuits against Trump during his first term ended without a final ruling on whether he had broken the clause. A federal appeals court dismissed a suit by members of Congress in 2020 because they lacked standing, the legal right to bring the case, and the Supreme Court dismissed two other cases as moot in 2021 after he left office.
Where the Lawsuit Stands
The case has just been filed in the US District Court for the District of Columbia. Greenberg says two UAE-linked deals broke the Foreign Emoluments Clause, World Liberty and the White House reject the claims, and USD1 and WLFI continue to operate as before.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided here is for general informational purposes only and does not constitute investment advice. Please do your own research before making any investment decisions.
FAQs
Who sued Trump and World Liberty Financial?
J. Benjamin Greenberg, a former Circle software engineer holding 10,000 Circle shares, filed the derivative lawsuit on 22 October 2026 in the US District Court for the District of Columbia on Circle's behalf, though Circle confirmed it did not initiate, direct, authorize, or participate in the action.
What is the Foreign Emoluments Clause?
The Foreign Emoluments Clause is a provision of the US Constitution (Article I, Section 9, Clause 8) that prohibits federal officeholders from accepting payments, gifts, offices, or titles from foreign governments without the consent of Congress.
Does the lawsuit affect USD1 or WLFI?
No, the lawsuit does not freeze, alter, or halt the smart contracts or trading functionality of the USD1 stablecoin or the WLFI token, and both assets continue to operate across decentralized networks without regulatory suspension.
What is World Liberty Financial (WLFI)?
World Liberty Financial is a decentralized finance protocol associated with the Trump family that operates the dollar-pegged stablecoin USD1 and the native WLFI token used for governance voting on platform proposals.
