Legal Action Against Donald Trump and Associates
A shareholder from Circle Internet Financial, the entity responsible for the USDC stablecoin, has initiated legal action against former President Donald Trump, along with his family’s cryptocurrency venture, World Liberty Financial, and US Special Envoy to the Middle East, Steve Witkoff. The lawsuit, filed on Thursday in the US District Court for the District of Columbia by J. Benjamin Greenberg, centers around a $2 billion transaction between a foreign government entity and the crypto exchange Binance.
Allegations of Corruption and Harm to Circle
According to Greenberg’s allegations, the actions of Trump, Witkoff, and World Liberty Financial facilitated foreign governments’ ability to use the Trump family’s USD1 stablecoin, which has, in turn, caused significant harm to Circle and hindered its competitive edge against other stablecoins, particularly USDC. He accuses the defendants of engaging in severe corruption, leading Circle to be unable to effectively participate in the stablecoin arena.
Investment and Business Opportunities
At the heart of the lawsuit is an Abu Dhabi-based investment entity linked to the royal family, MGX, which is reported to have made a notable $2 billion investment in Binance utilizing the USD1 stablecoin back in 2025. Earlier reporting by the Wall Street Journal uncovered that Sheikh Tahnoon bin Zayed Al Nahyan’s investment vehicle was also in negotiations to purchase a 49% stake in World Liberty Financial for a sum of $500 million.
Greenberg contends that through these dealings, the president and his affiliations have diverted lucrative business opportunities away from Circle, further asserting that their actions contravene the Foreign Emoluments Clause of the US Constitution. He is seeking a court ruling that validates these claims and an injunction that would prevent Trump and Witkoff from engaging in similar financial pursuits unless approved by Congress. Greenberg holds a stake in Circle, evidenced by his ownership of 10,000 ordinary shares.
Responses and Broader Implications
Zach Witkoff, referred to in the lawsuit, is the co-founder of World Liberty Financial, a venture co-founded by Trump and his sons. In response to the legal filing, a spokesperson for Circle stated that the company was not involved in the lawsuit’s initiation and chose not to comment further on ongoing legal matters. Requests for comments from representatives of World Liberty and the White House were not met.
Trump and his family are reportedly involved in multiple cryptocurrency-related projects, which, according to Public Citizen, have reportedly earned Trump approximately $1.4 billion while concurrently leading to losses for investors in the vicinity of $4.7 billion. This is one of many contentious dealings under scrutiny regarding Trump’s business ventures, which include controversial exchanges, like receiving a jet from Qatar.
Political Context and Criticism
As the 2026 midterm elections approach, with early voting commencing in various states, Democrats are seizing the opportunity to critique Trump’s financial activities related to cryptocurrency as leverage to influence voter decisions in favor of their candidates. Senator Mark Warner recently aired a campaign commercial emphasizing that Trump alone profited over $600 million from a specific crypto memecoin.
