Circle shareholder J. Benjamin Greenberg filed a derivative lawsuit on October 22, 2026, alleging President Donald Trump illegally profited from his office through UAE-linked cryptocurrency deals. The suit claims a $500 million investment in World Liberty Financial and a $2 billion transaction settled in its USD1 stablecoin violated the Foreign Emoluments Clause while depriving Circle of up to $82 million in annual reserve revenue. The White House and World Liberty denied all wrongdoing, calling the lawsuit frivolous.
Lawsuit filed against Trump and affiliates
- ▪J. Benjamin Greenberg holds 10,000 Class A ordinary shares of Circle Internet Group Inc. and brought his lawsuit against Donald Trump on Circle's behalf without company authorization
- ▪J. Benjamin Greenberg's derivative lawsuit names U.S. Special Envoy to the Middle East Steve Witkoff and four Trump-linked holding companies as co-defendants alongside Donald Trump and World Liberty Financial
- ▪J. Benjamin Greenberg, a Circle shareholder and former employee, filed a derivative lawsuit against President Donald Trump and World Liberty Financial in Washington federal court
Allegations of illegal Foreign Emoluments
- ▪Aryam, an investment vehicle linked to UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, agreed to purchase 49% of World Liberty Financial for $500 million
- ▪J. Benjamin Greenberg's derivative suit alleges Donald Trump violated the Foreign Emoluments Clause of the U.S. Constitution by accepting payments from UAE-linked entities through World Liberty Financial without congressional consent
- ▪J. Benjamin Greenberg's lawsuit links the UAE crypto investments to subsequent U.S. policy decisions, including approvals for advanced AI chips for the UAE and a presidential pardon for Binance founder Changpeng Zhao
- ▪J. Benjamin Greenberg's derivative complaint alleges $187 million of Aryam's initial $250 million payment went to Trump-linked entities before inauguration, with $75.5 million more reaching them while Trump was in office
Commercial impact on Circle's stablecoin
- ▪Abu Dhabi-backed fund MGX, chaired by Sheikh Tahnoon, used World Liberty Financial's USD1 stablecoin to settle a $2 billion transaction with cryptocurrency exchange Binance in 2025
- ▪Circle had agreed in November 2024 to pay Binance $60 million upfront plus monthly fees, after which Binance announced it would adopt USDC for its corporate treasury
- ▪J. Benjamin Greenberg's complaint alleges World Liberty Financial's USD1 diverted stablecoin business from Circle's USDC, depriving Circle of an estimated $70 million to $82 million in annual reserve interest income
- ▪World Liberty Financial stated in a May 2025 letter to U.S. senators that the $2 billion Binance transaction would have been settled in foreign currency, likely UAE dirhams, had USD1 not been used
Responses to the shareholder lawsuit
- ▪White House spokesperson Anna Kelly denied the allegations in J. Benjamin Greenberg's lawsuit, stating President Donald Trump has no conflicts of interest and calling the lawsuit frivolous
- ▪World Liberty Financial spokesperson David Wachsman stated that the shareholder claims in J. Benjamin Greenberg's lawsuit are without merit and that the company is compliant with all U.S. laws and regulations
- ▪Circle issued a statement clarifying that the company did not initiate, direct, authorize, or participate in J. Benjamin Greenberg's lawsuit
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