A longtime Circle shareholder has filed a lawsuit against President Donald Trump and his family’s cryptocurrency venture, World Liberty Financial. The legal action centers on the Foreign Emoluments Clause and alleges that two transactions tied to the United Arab Emirates cost Circle between $70 million and $82 million annually in diverted stablecoin business.
Lawsuit Details and Allegations
The complaint was filed Thursday in the US District Court for the District of Columbia. It names President Trump in his official capacity, World Liberty Financial LLC and its affiliates, and Steve Witkoff, the US Special Envoy to the Middle East.
At the center of the lawsuit are two specific transactions involving World Liberty and entities linked to the UAE:
- A $500 million sale of a 49% stake in World Liberty to an entity associated with Sheikh Tahnoon bin Zayed Al Nahyan.
- A subsequent $2 billion purchase of World Liberty’s USD1 stablecoin by Abu Dhabi’s MGX fund.
The plaintiff argues that these deals provided World Liberty’s stablecoin operation with an unfair competitive advantage, specifically regarding access to capital, which harmed the market position of Circle’s established USDC stablecoin. The lawsuit seeks compensatory damages, punitive damages, and judicial declarations that constitutional violations occurred.
The Foreign Emoluments Clause and Market Context
The Foreign Emoluments Clause prohibits federal officeholders from accepting payments or benefits from foreign governments without the consent of Congress. The lawsuit contends that funds from Abu Dhabi flowing into a Trump family business violate this restriction.
World Liberty Financial was co-founded in 2024 by Trump and his sons. Its USD1 stablecoin competes with Circle’s USDC in the dollar-pegged token market, where issuers generate revenue from the reserves backing the tokens. Financial disclosures indicated that Trump's earnings from crypto ventures exceeded $1.4 billion in 2025.
The claims remain allegations as the case has not yet gone to trial, and the defendants have not substantially responded in court.
