Circle shareholder sues Trump, World Liberty and Steve Witkoff over USD1 stablecoin deals

A Circle investor takes the fight to court

A shareholder of Circle Internet Financial, the company behind the USDC stablecoin, has sued US President Donald Trump, his family's crypto company World Liberty Financial, related entities and US Special Envoy to the Middle East Steve Witkoff. The filing was made on Thursday in the US District Court for the District of Columbia.

The shareholder, J. Benjamin Greenberg, claims the president and the other defendants caused harm to Circle by creating a route for foreign governments to move money using World Liberty's USD1 stablecoin. A stablecoin is a crypto token designed to keep a steady value, usually tied to the US dollar.

According to Greenberg, this leaves Circle unable to compete in the stablecoin market with USDC.

What the filing asks the court to do

• Declare that the president's actions violated the US Constitution.


• Block the conduct described in the complaint.


• Order an accounting of payments from foreign states to the president and his businesses.


• Require the companies holding those payments to give them up.


• Award compensatory and punitive damages.

Greenberg says he holds 10,000 ordinary shares of Circle, which he lists as his reason for bringing the case. He also asks the court to rule that Trump breached the Constitution's Foreign Emoluments Clause, a provision that limits payments or benefits US officials can receive from foreign governments without Congress' consent, and to stop the president and Witkoff from pursuing similar financial interests without that consent.

The $2 billion Binance payment at the center of the case

The key allegation concerns MGX, an Abu Dhabi entity linked to the United Arab Emirates' royal family. According to the filing, MGX invested $2 billion into the crypto exchange Binance in 2025 using USD1. A crypto exchange is a platform where people buy and sell digital assets.

Cointelegraph also cited a Wall Street Journal report from February that a separate investment vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan agreed to buy a 49% stake in World Liberty for $500 million.

Greenberg alleged that by accepting hundreds of millions of dollars from a foreign government, the president and his companies "diverted business" from Circle.

Zach Witkoff, son of the Witkoff named in the suit, is a co-founder of World Liberty. Trump and his three sons are also listed as co-founders of the crypto venture.

How Circle and the White House responded

A Circle spokesperson told Cointelegraph that the company "did not initiate, direct, authorize, or participate in the filing" and declined to comment on pending litigation.

White House spokesperson Anna Kelly said Trump has "no conflicts of interest" with his crypto investments and called the lawsuit "frivolous." A spokesperson for World Liberty did not respond to a request for comment.

Confirmed facts and open questions

What is confirmed: the lawsuit was filed on Thursday in the District of Columbia court, Greenberg is named as the plaintiff and reports holding 10,000 Circle shares, and Circle, the White House and World Liberty have each been approached or have responded as described above.

What is not confirmed: the allegations of corruption and constitutional violations are Greenberg's claims, not court findings. No ruling has been reported. World Liberty has not publicly commented on the case.

Crypto deals become a campaign issue before the midterms

Trump and his family are connected to several crypto businesses. The article reports that Trump reported these ventures netted him $1.4 billion in 2025, while costing investors about $4.7 billion, according to reporting by the nonprofit consumer advocacy group Public Citizen. The piece also notes that the deals are among several arrangements Trump faces scrutiny over, including accepting a jet from the government of Qatar.

With less than two weeks until the 2026 midterms and early voting already under way in some states, Democrats seeking reelection are using the president's crypto deals as a campaign issue. Last week, Senator Mark Warner released a campaign ad stating that the president made "more than $600 million alone from the crypto memecoin."

Why the case draws attention

The lawsuit puts a dispute over stablecoin market competition, foreign payments and the presidency in front of a federal court. It also adds to the political argument over the Trump family's crypto businesses as the midterm elections approach.

Sources

• Cointelegraph