Circle Internet Group shareholder Jay Benjamin Greenberg filed a lawsuit on Oct. 22, 2026, against U.S. President Donald Trump, World Liberty Financial and related individuals, alleging that Trump received unlawful financial benefits from transactions involving United Arab Emirates-linked entities. The case challenges two deals involving $2.5 billion and seeks the return of allegedly unlawful proceeds, disclosure of similar receipts and damages.

Greenberg filed the complaint in the U.S. District Court for the District of Columbia, where it was registered as No. 26-cv-03686. He argues that World Liberty Financial’s activities violated a provision of the U.S. Constitution prohibiting the president from receiving payments or other material benefits from foreign states without congressional consent.

The plaintiff also alleges that the transactions created unfair competition in the stablecoin market, causing financial losses to Circle, the issuer of USDC, and its shareholders.

UAE-linked transactions

The first transaction involved the sale of a 49% stake in World Liberty Financial for $500 million to an entity financed by members of the UAE’s ruling family. The agreement was reached shortly before Trump’s inauguration in January 2025.

According to media reports, the buyer is linked to Sheikh Tahnoun bin Zayed Al Nahyan, the UAE’s national security adviser. Part of the proceeds went to entities tied to the families of Trump and his special envoy, Steve Witkoff.

The second transaction involved a $2 billion investment in the Binance crypto exchange by MGX, an Abu Dhabi state company. World Liberty Financial’s USD1 stablecoin was used to settle the transaction.

Greenberg alleges that the use of USD1 gave World Liberty Financial financial advantages, including income from the stablecoin’s reserves. He argues that such transactions may have generated unlawful profits for Trump from funds linked to a foreign state.

According to an earlier Public Citizen analysis, Trump received at least $1.4 billion from crypto-related activities in 2025. The analysis attributed $197 million to contributions from World Liberty Financial partners and another $2.2 million to the company’s revenue from stablecoin operations.

Greenberg is asking the court to declare Trump’s alleged income from foreign state entities unconstitutional, require disclosure of other similar receipts and order the return of funds obtained in violation of the law. He is also seeking damages in an amount that has not been determined.

Circle stressed that an individual shareholder filed the lawsuit. The company said it did not initiate, authorize or participate in preparing the legal action.

World Liberty Financial spokesperson David Waxman called the claims unfounded. He said the organization complies with U.S. law and that its employees do not hold federal government positions. The Trump administration also rejected suggestions that the president’s official duties conflict with his crypto business interests.

Congressional scrutiny

Greenberg’s allegations partly overlap with questions previously raised by U.S. lawmakers. In May 2025, Democratic Senator Richard Blumenthal opened a preliminary inquiry into a potential conflict of interest involving Trump’s crypto projects, including World Liberty Financial and the TRUMP memecoin.

Blumenthal sent requests to World Liberty Financial co-founder Zach Witkoff and representatives of Fight Fight Fight LLC, the company behind the memecoin. He raised concerns that Trump-linked entities may have received investments from foreign governments and that the president’s promotion of crypto assets created opportunities for certain individuals to enrich themselves.

The senator focused in particular on the MGX transaction, suggesting that the use of USD1 for the multibillion-dollar Binance investment could violate the constitutional prohibition on receiving benefits from foreign states. He requested documents concerning World Liberty Financial’s ownership, investors and financial ties to Trump’s family, as well as correspondence involving the company, the Trump administration and foreign governments.

In June 2026, a group of Democratic senators, including Blumenthal and Elizabeth Warren, called for hearings into Trump’s crypto business ties to the UAE. The lawmakers pointed to U.S. approval of about $1.45 billion in arms shipments to the Emirates after the World Liberty Financial stake sale, followed by authorization to export advanced U.S.-made chips to G42.

The senators said those decisions warranted examination of whether the Trump family’s financial interests influenced public policy. Warren renewed calls for a review in August after export restrictions for the UAE were eased following investments in World Liberty Financial.

Representative Ro Khanna separately opened an inquiry into the $500 million transaction, seeking information about its funding sources, ultimate beneficiaries and any possible connection between the investments and decisions by the U.S. administration.

Source: Incrypted