Lawsuit targets Trump-linked crypto deals involving UAE and USD1
A Circle shareholder, J. Benjamin Greenberg, has filed a federal lawsuit in Washington against Donald Trump, World Liberty Financial, related entities and Steve Witkoff. The complaint challenges two UAE-linked transactions worth $2.5 billion: a $500 million purchase of 49% of World Liberty and a $2 billion MGX investment in Binance made with the USD1 stablecoin. Circle has distanced itself from the suit, and World Liberty denies the allegations.
The suit was filed Thursday in a Washington federal court by J. Benjamin Greenberg, a Circle investor and former staffer. It names Trump, World Liberty Financial, affiliated companies, and Middle East envoy Steve Witkoff. At issue is a pre-inauguration agreement by a Sheikh Tahnoon-backed entity to buy 49% of World Liberty for $500 million, with $250 million due at once.
The second challenged deal saw Abu Dhabi's MGX place $2 billion into Binance using World Liberty's USD1 token in 2025, raising USD1's profile. Greenberg's derivative claim says Circle was harmed; Circle says it did not authorize the case. The complaint invokes the Foreign Emoluments Clause and seeks accounting, profit recovery, and damages. No court has found illegality.
The case may draw more attention to how foreign-linked crypto investments intersect with public office, potentially affecting investors in stablecoin issuers, exchange users, and firms tied to politically connected projects. It could also influence how courts and regulators view stablecoin flows and disclosure duties, though the allegations remain unproven. Market participants may price legal and reputational risk more carefully, while the public may gain clearer insight into crypto's role in political finance.