J. Benjamin Greenberg, a shareholder in Circle Internet Group, filed a federal lawsuit Thursday against US President Donald Trump and World Liberty Financial. The complaint alleges that two transactions linked to the United Arab Emirates violated the Constitution's Foreign Emoluments Clause, which restricts presidents from accepting payments from foreign governments without congressional approval.
The lawsuit centers on a $500 million sale of a 49% stake in World Liberty to an investment vehicle backed by a member of the UAE ruling family. It also addresses the use of USD1 by Abu Dhabi-based MGX to fund a $2 billion investment in Binance.
Greenberg alleges the transactions financially harmed Circle shareholders through unfair competition, as World Liberty's USD1 stablecoin competes with Circle's USDC. In his complaint, Greenberg stated: "This action is about the President of the United States corruptly profiting from more than $2 billion in payments from a foreign government in direct violation of the constitution."
The lawsuit seeks an order preventing Trump from violating the clause, the return of allegedly illegal profits, and unspecified damages. Greenberg brought the case as an individual shareholder seeking recovery on Circle's behalf rather than as a lawsuit initiated by Circle itself.
World Liberty rejected the allegations, with spokesperson David Wachsman describing the claims as "without merit" and stating the company complies with US laws and regulations. The White House denied that Trump faces conflicts of interest, calling the lawsuit frivolous. Circle confirmed it did not initiate, direct, authorize, or participate in the filing.
The case, Greenberg v. Trump, was filed in the US District Court for the District of Columbia. Trump disclosed more than $1 billion in earnings tied to his crypto ventures last year, triggering congressional scrutiny and contributing to the failure of the CLARITY Act, which was intended to establish market-structure rules for the industry.
