Circle investor challenges Trump-linked stablecoin transaction in court
An investor in Circle Internet Financial has filed a lawsuit accusing President Donald Trump, World Liberty Financial and Steve Witkoff of using a $2 billion Binance transaction tied to the USD1 stablecoin to benefit foreign interests and disadvantage Circle’s USDC business. The complaint seeks a ruling that the alleged conduct is unconstitutional, restrictions on similar foreign payments without congressional approval, an accounting, and damages. Circle said it was not involved in the suit, while the White House dismissed it as frivolous.
The suit was lodged Oct. 22 in Washington’s federal district court. It names Trump, World Liberty Financial and related entities, and Middle East envoy Steve Witkoff. The filing centers on Abu Dhabi-linked MGX’s 2025 $2 billion Binance investment made with USD1, plus a cited $500 million agreement for a Sheikh Tahnoon-backed vehicle to acquire 49% of World Liberty.
Greenberg, who says he holds 10,000 Circle ordinary shares, invokes the Foreign Emoluments Clause. He seeks a constitutional ruling, limits on similar foreign payments absent Congress’s approval, an accounting and damages. Circle stated it neither brought nor directed the case; the White House called it frivolous; World Liberty did not comment.
The case could draw more attention to how stablecoin deals and foreign investment intersect with public officials’ financial interests. Investors in Circle and other stablecoin issuers may face heightened scrutiny, while voters and regulators may debate disclosure and approval rules. Because it is an allegation, its practical effect may depend on court acceptance and evidence; it could also shape how crypto firms assess political and reputational risk.