Donald Trump Faces Suit Over $2B USD1 Deal, but Circle Disclaims Involvement

A civil lawsuit filed in Washington federal court challenges cryptocurrency deals involving Donald Trump, centering on a $2 billion Binance investment settled via World Liberty Financial’s USD1 stablecoin and a $500 million agreement for a 49% stake in the company. J. Benjamin Greenberg, a Circle shareholder, brought the complaint on October 22, 2026, claiming these arrangements granted unconstitutional foreign benefits to the president.

The lawsuit requests an accounting of payments from foreign governments, restrictions barring future payments lacking congressional consent, and the forfeiture of illicit profits. Although Greenberg initiated the action derivatively on behalf of Circle, the company clarified that it did not endorse or take part in the filing. Both World Liberty and the White House have firmly dismissed the accusations.

A Lawsuit Against Donald Trump Over UAE Crypto Deals Built on Two Agreements

Filed in the U.S. District Court for the District of Columbia against Trump, World Liberty Financial, and other defendants, the civil complaint points to potential violations of the Foreign Emoluments Clause, which bars federal officeholders from accepting foreign-state benefits without congressional approval.

The legal action pairs this constitutional grievance with claims of corporate harm to Circle, a rival stablecoin issuer where Greenberg holds equity. According to the complaint, foreign-connected business operations were funneled to World Liberty to Circle’s direct detriment, harming both the enterprise and its investors.

The initial transaction involved an entity backed by UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, which agreed to pay $500 million for a 49% share of World Liberty prior to Trump’s January 2025 inauguration. Greenberg claims Trump subsequently collected over $75.5 million from this deal after taking office. The second transaction featured an Abu Dhabi investment fund chaired by Tahnoon; it deployed $2 billion into Binance utilizing USD1 for settlement, a mechanism the complaint labels as a tactic to boost the value of Trump’s crypto holdings.

Because the equity pact occurred just ahead of Trump’s return to the presidency and the personal payouts arrived afterward, Greenberg argues the timeline proves a sitting federal official personally profited. The complaint also highlights administrative actions from 2025 and August 2026 as supporting context.

Chasing Trump’s Proceeds While Circle Disowns the Suit

As a former software engineer for Circle who was compensated with company equity, Greenberg relies on his shareholder status to litigate on the firm’s behalf, arguing that the contested deals siphoned operations away from Circle.

Circle has distanced itself from the litigation. A representative told Quartz that the firm “did not initiate, direct, authorize, or participate in the filing.” This leaves Greenberg asserting interests on Circle’s behalf while the corporation itself rejects any involvement.

Sheikh Tahnoon, serving as the UAE national security adviser, links the two transactions: he backed the group buying the World Liberty stake and leads the Abu Dhabi fund behind the Binance investment. Greenberg uses these ties to claim Trump obtained foreign-state benefits via his family’s crypto enterprise.

The defendant list features Trump, World Liberty Financial, and U.S. Middle East Special Envoy Steve Witkoff, whom Greenberg accuses of helping broker the foreign benefits. Also named are WLF Holdco, Stablecoin Holdco, and DT Marks DEFI LLC—the vehicle through which the Trump family manages and gathers World Liberty earnings. The claims accuse World Liberty and its holding entities of deliberately undermining Circle’s operations and inflicting financial loss.

The Deals Behind the Suit — and the Approvals Greenberg Cites

World Liberty maintains that Trump played no part in the 49% stake transaction. Even so, Greenberg’s complaint zeroes in on the funds he allegedly collected post-inauguration, highlighting the $500 million valuation alongside a separate $75.5 million in post-inauguration receipts.

The complaint references the Commerce Department’s 2025 greenlight for advanced Nvidia AI chip sales to an Abu Dhabi artificial intelligence enterprise chaired by Tahnoon, as well as an August 2026 Treasury Department bureau ruling offering conditional approval for a World Liberty trust bank co-owned by the Trump family and the UAE government. This trust bank proposal broadens the scope of the lawsuit beyond the initial equity deal and Binance settlement. Meanwhile, the White House maintains that Trump operates in the public interest and rejects assertions of asset conflicts.

USD1 Is the Payment Instrument, and That Is the Point

While Circle issues USDC and EURC, World Liberty’s USD1 functioned as the settlement vehicle for the Binance transaction. Greenberg argues that steering commercial activity through a competitor backed by the president’s family deprived Circle of business and diminished shareholder value, adding a commercial competition angle to the constitutional lawsuit.

Binance served as the investment destination, with USD1 acting as the settlement medium. Greenberg asserts that employing this stablecoin drove up the worth of Trump’s crypto investments, framing the setup as a deliberate “scheme” to boost those assets. The legal theory ties the choice of payment currency directly to presidential enrichment.

The Foreign Emoluments Clause bars federal officials from taking payments or perks from foreign states without congressional approval. Greenberg aims to apply this rule to the post-inauguration equity returns and the financial advantages he links to the USD1 settlement, asking the court to bar Trump from accepting unapproved foreign payments moving forward.

$500 Million and $2 Billion Grew Into $2.5 Billion — the $75.5 Million Is the Claim

The total transaction value reaches $2.5 billion, combining the $500 million equity stake and the $2 billion Binance investment settled in USD1. Within these figures, the complaint identifies over $75.5 million as money Trump supposedly pocketed after taking office from the equity agreement.

Greenberg demands the forfeiture of profits deemed illegal and requests a comprehensive accounting of foreign-government disbursements. This accounting would establish a financial record to help the court gauge the validity of the relief sought, especially regarding how benefits tied to the stablecoin settlement and equity sales flowed through World Liberty.

“More Like a Partisan Press Release Than a Lawsuit”

Bill Burck, counsel for World Liberty, dismissed the lawsuit as “more like a partisan press release than a lawsuit.” Company representative David Wachsman added that the assertions are “without merit” and welcomed the opportunity to face them in court, reiterating that Trump was not involved in the equity agreement.

White House representatives Anna Kelly and Lauren Bis both labeled the lawsuit frivolous and unfounded, noting that Trump’s assets are managed via a trust and that he has no conflicts of interest. Matt Pelikan of Evergreen Legal, representing Greenberg, framed the requested recovery as an initiative to force Trump to return unlawful profits to U.S. taxpayers.

These contrasting arguments present the court with a civil dispute involving alleged foreign benefits, corporate competition concerns, and demands ranging from financial disclosures to asset repayment.

The Orders Greenberg Wants the Court to Issue

Greenberg requests a judicial declaration that Trump’s profits from these transactions breach the Foreign Emoluments Clause, alongside a full financial accounting of money received from foreign governments by Trump and his enterprises, as highlighted by Spectrum News.

The plaintiff also calls for disclosures regarding other foreign crypto-related emoluments acquired during Trump’s term, paired with an injunction halting future foreign payments absent congressional consent. Beyond past transactions, this would place upcoming foreign arrangements under judicial scrutiny.

Greenberg seeks the disgorgement of profits found to be unlawful, with Pelikan stating that American taxpayers should be the intended recipients. Ultimately, any financial recovery relies on the court ruling in favor of the plaintiff’s constitutional and financial disclosures.

FAQ

When did J. Benjamin Greenberg work at Circle?

Greenberg was employed at Circle from January 2016 through September 2018, receiving equity as part of his compensation package, which forms the basis of his shareholder standing for the derivative lawsuit.

Which law firm represents Greenberg in the lawsuit?

Matt Pelikan of Evergreen Legal represents Greenberg in the matter.

What role does DT Marks DEFI LLC play in the Trump family’s World Liberty revenue?

DT Marks DEFI LLC collects and holds World Liberty revenue on behalf of the Trump family.

How does Sheikh Tahnoon connect the two challenged transactions?

Sheikh Tahnoon is the UAE national security adviser who backed the entity purchasing the World Liberty stake and leads the Abu Dhabi investment fund that funded the Binance USD1 investment.

Which institutions are involved in the trust-bank decision cited by Greenberg?

A bureau of the Treasury Department granted conditional approval in August 2026 for a World Liberty trust bank co-owned by the Trump family and the UAE government.

How is the AI company in the complaint connected to the UAE transactions?

The Abu Dhabi artificial intelligence company is chaired by Sheikh Tahnoon, who also ties together the two crypto deals.

What explanation did the White House give about Trump’s assets?

White House representatives stated that Trump’s assets are kept in a trust, that he acts in the public interest, and that no conflicts of interest exist.

This article is for information only and is not financial advice.