Shareholder sues Trump and World Liberty over foreign crypto profits
The suit alleges World Liberty Financial's UAE-linked deals violated the Constitution's Foreign Emoluments Clause, which bans foreign payments to officeholders.
At a glance
- A Circle Internet Group shareholder sued Trump and World Liberty Financial, alleging illegal foreign crypto profits.
- The suit cites a $500 million UAE stake and a $2 billion USD1 stablecoin purchase as foreign emoluments.
- World Liberty and the White House call the case frivolous; Trump reported $1.4 billion in crypto income.
A shareholder of the U.S. crypto company Circle Internet Group filed a federal lawsuit on Thursday accusing President Donald Trump and his family's crypto venture, World Liberty Financial, of "corruptly profiting" from more than $2 billion in foreign digital-currency deals in violation of the Constitution.
The civil complaint, filed in U.S. District Court in Washington by former Circle employee J. Benjamin Greenberg, says the transactions breach the Foreign Emoluments Clause, which bars federal officeholders from accepting money or gifts from foreign officials without Congress's consent. "No president in American history has profited from his office so brazenly," the suit alleges.
What the suit claims
The filing centres on two alleged "illegal foreign emoluments" tied to Sheikh Tahnoon bin Zayed Al Nahyan, the national security adviser of the United Arab Emirates. Days before Trump's January 2025 inauguration, an entity backed by Tahnoon agreed to buy a 49% stake in World Liberty for $500 million. World Liberty told The Wall Street Journal, which revealed the transaction in January 2026, that Trump had no involvement, but the purchase would bring him millions of dollars after he took office, according to his financial disclosures.
The suit also points to an Abu Dhabi-based investment fund chaired by Tahnoon that bought $2 billion of World Liberty's USD1 stablecoin, which the complaint describes as a "scheme" to inflate the value of Trump's crypto holdings.
Named as defendants are Trump, World Liberty, U.S. Middle East Special Envoy Steve Witkoff and four related limited liability companies. Greenberg is suing derivatively on behalf of Circle; the company said it "did not initiate, direct, authorize, or participate in the filing."
Denials from World Liberty and the White House
Bill Burck of Quinn Emanuel, counsel for World Liberty, said the case sounds "more like a partisan press release than a lawsuit." White House spokesperson Anna Kelly told CNBC it was "yet another frivolous lawsuit" and said, "There are no conflicts of interest." World Liberty spokesperson David Wachsman said the company is compliant with all U.S. laws and regulations and that the claims are without merit.
Matt Pelikan of Evergreen Legal, representing Greenberg, said Trump "made millions from these deals by selling out the American people" and that the suit seeks to force him to return profits to taxpayers. Greenberg also wants a court declaration that the profits are unconstitutional and disclosure of any other foreign crypto emoluments he has received.
A fast-growing crypto business
World Liberty, launched in 2024 with members of the Trump and Witkoff families, operates USD1; an entity affiliated with Trump and his family owns about 38% of the company. Trump reported more than $1.4 billion in crypto income in his 2025 annual financial disclosure, nearly $800 million of it tied to World Liberty, while the WLFI governance token fell from about 45 cents in August 2025 to about 5 cents by the end of June 2026.
Months after Tahnoon's 2025 investment, the administration expanded UAE access to advanced U.S. AI chips, including for G42, a UAE state-backed AI company controlled by Tahnoon. Lawmakers have sought information about those dealings and signalled that Trump family business transactions could face further investigation if Democrats gain subpoena power in Congress in the 2026 midterm election.
Source: CNBC Top News.
Questions and answers
- What is the lawsuit against Trump and World Liberty Financial about?
- A Circle shareholder alleges Trump and World Liberty violated the Foreign Emoluments Clause by profiting from more than $2 billion in UAE-linked crypto deals. The suit seeks a declaration that the profits were illegal and their return.
- Who is Sheikh Tahnoon bin Zayed Al Nahyan?
- He is the national security adviser of the United Arab Emirates. An entity backed by him agreed to buy 49% of World Liberty for $500 million days before Trump's 2025 inauguration, and a fund he chairs bought $2 billion of the USD1 stablecoin.
- What does World Liberty Financial say about the lawsuit?
- Counsel Bill Burck called it "more like a partisan press release than a lawsuit," and spokesperson David Wachsman said the company complies with U.S. law. The White House called the case frivolous and denied conflicts of interest.
