Circle shareholder sues Trump, World Liberty over USD1 deals

Key points

• Circle shareholder J. Benjamin Greenberg sued Trump, World Liberty and Steve Witkoff on Oct. 22
• Suit says USD1 deals with UAE-linked entities left Circle unable to compete
• Circle says it did not initiate or take part in the filing
• White House called the suit frivolous and denied any conflicts

A shareholder in Circle, the issuer of the USDC stablecoin, filed a lawsuit on Thursday against President Donald Trump, World Liberty Financial and U.S. Middle East envoy Steve Witkoff. The suit alleges that deals tied to World Liberty’s USD1 stablecoin violated the Constitution and left Circle unable to compete, according to Cointelegraph.

What the lawsuit alleges

The plaintiff, J. Benjamin Greenberg, says he holds 10,000 Circle ordinary shares. Bitcoin Magazine reported that he is also a former Circle employee and that the case is captioned Greenberg v. Trump. Cointelegraph reported that it was filed in the U.S. District Court for the District of Columbia.

The complaint centers on two transactions. In 2025, MGX, an Abu Dhabi entity, invested $2 billion in Binance using USD1, according to Cointelegraph. The suit also points to a February Wall Street Journal report that an investment vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan, a member of the UAE ruling family, agreed to pay $500 million for a 49% stake in World Liberty.

The suit argues these arrangements gave foreign governments a way to route money to the president through USD1. Bitcoin Magazine reported that the complaint also alleges the president gave Emirati leadership access to advanced AI chips and pardoned a convicted felon in return. It describes the conduct as public corruption. Greenberg says the arrangement left Circle “unable to compete” with USD1, harming USDC, Cointelegraph reported.

Relief the plaintiff is seeking

According to Cointelegraph, the complaint asks the court to:

• declare that the president violated the Foreign Emoluments Clause of the Constitution;
• bar the president and Witkoff from pursuing similar financial interests without the consent of Congress;
• order an accounting of billions of dollars in payments from foreign states; and
• award disgorgement of emoluments along with compensatory and punitive damages.

Responses from Circle and the White House

Circle distanced itself from the case. A spokesperson said the company “did not initiate, direct, authorize, or participate in the filing” and declined to comment on pending litigation, Cointelegraph reported.

White House spokesperson Anna Kelly said Trump has “no conflicts of interest” and called the suit “frivolous,” according to the same report. World Liberty did not respond to a request for comment. Bitcoin Magazine noted that Trump and the White House have consistently denied any conflicts.

Political backdrop

World Liberty is a decentralized finance project co-founded by Trump and his sons. Cointelegraph noted that Zach Witkoff, the son of Steve Witkoff, is also a co-founder.

The filing comes less than two weeks before the midterm elections. Cointelegraph reported that Public Citizen has estimated Trump’s crypto ventures netted him $1.4 billion in 2025 and cost investors about $4.7 billion. Sen. Mark Warner has released a campaign ad claiming Trump made more than $600 million from a memecoin.

Bitcoin Magazine reported that lawmakers blocked the Clarity Act last month, with some citing allegations that the Trump family profited improperly from crypto ventures. Trump had backed the market structure bill.

The articles did not link to the complaint itself. Bitcoin Magazine pointed to the CourtListener docket as the primary record. The allegations are unproven, and the defendants have not yet filed a response in court.