A shareholder of Circle, the stablecoin issuer, sued President Donald Trump on October 22 in Washington federal court, alleging that cryptocurrency deals involving UAE entities enriched Trump-linked companies and diverted business from the company's USDC stablecoin.
The complaint targets a $500 million investment in World Liberty Financial and a subsequent $2 billion transaction settled using USD1, a stablecoin launched by World Liberty. J. Benjamin Greenberg, a former Circle employee holding 10,000 Class A shares, brought the case on the company's behalf.
The UAE investment structure
An investment vehicle allegedly linked to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE national security adviser, agreed to pay $500 million for a 49% stake in World Liberty four days before Trump's January 2025 inauguration. Of the $250 million initial payment, $187 million went to Trump-linked entities, with the remaining $250 million due in July.
The complaint alleges that $263 million in 2025 equity-sale proceeds to Trump-related entities represented proceeds above their initial payment share, suggesting additional funds flowed to the president's businesses after his inauguration.
The stablecoin transaction
In March 2025, Abu Dhabi-backed MGX announced a $2 billion investment in Binance, initially without specifying a settlement currency. USD1 launched on March 25, nearly two weeks after the announcement. World Liberty disclosed on May 1 that USD1 would be used for settlement.
The complaint states that USD1's circulating supply rose by approximately two billion tokens in the eight days preceding the disclosure, attributed primarily to MGX's purchase. This created reserves backing USD1, generating potential interest income for World Liberty.
Alleged commercial harm to Circle
The shareholder argues that Circle lost business that could have generated substantial revenue. Circle had previously agreed to pay Binance $60 million upfront plus monthly fees in November 2024, and Binance announced in December 2024 that it would adopt USDC for its corporate treasury.
At Circle's 2025 reserve return rate of 4.1% and second-quarter 2026 rate of 3.5%, the complaint calculates that $2 billion in reserves could have generated $70 million to $82 million in annual gross reserve income. The filing notes these figures represent potential income dependent on USDC having been selected and tokens remaining in circulation.
Constitutional claims
Greenberg alleges that the transactions violated the Foreign Emoluments Clause of the Constitution, which restricts benefits to the president from foreign governments without congressional approval. The complaint states that Congress has not consented to the alleged arrangements.
The shareholder seeks an injunction blocking further prohibited foreign benefits, an order requiring Trump-linked companies to account for and surrender disputed proceeds, and damages to Circle. A court has yet to determine whether the transactions violated applicable law.
