Circle shareholder sues Trump, World Liberty and Witkoff, alleging UAE-linked USD1 deals hurt USDC and violate the Constitution

Summary

A Circle shareholder, J. Benjamin Greenberg, sued President Donald Trump, the Trump family's World Liberty Financial and U.S. Middle East envoy Steve Witkoff on Thursday, Cointelegraph and Bitcoin Magazine reported.

The suit alleges foreign money tied to the UAE was routed through World Liberty and its USD1 stablecoin, which Greenberg says violates the Constitution's Foreign Emoluments Clause and left Circle, issuer of USDC, "unable to compete," per Cointelegraph.

The outlets describe the $2 billion at the center differently: Cointelegraph says Abu Dhabi entity MGX invested $2 billion into Binance using USD1 in 2025, while Bitcoin Magazine says the suit alleges a fund created by Abu Dhabi's government gave the president $2 billion via USD1.

A Circle spokesperson told Cointelegraph the company "did not initiate, direct, authorize, or participate in the filing"; World Liberty and the White House did not respond to Cointelegraph, and Bitcoin Magazine noted Trump and the White House have always denied conflicts of interest.

Key facts

• The suit was filed in the U.S. District Court for the District of Columbia, Cointelegraph reported. (Cointelegraph)
• Greenberg reported holding 10,000 Circle shares and asked the court to declare a Foreign Emoluments Clause violation and bar Trump and Witkoff from similar financial interests without Congress' consent, per Cointelegraph. (Cointelegraph)
• Bitcoin Magazine described Greenberg as a former Circle employee. (Bitcoin Magazine)
• Both outlets cite a February Wall Street Journal report that a vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan agreed to pay $500 million for a 49% stake in World Liberty. (Cointelegraph)
• Bitcoin Magazine said the suit also alleges the president gave Emirati leadership access to advanced AI chips and pardoned a convicted felon in return for the crypto investment. (Bitcoin Magazine)
• Zach Witkoff, Steve Witkoff's son, is a World Liberty co-founder, as are Trump and his three sons, Cointelegraph reported. (Cointelegraph)

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