Trump Faces Lawsuit Over UAE Crypto Deals Linked to World Liberty Financial

Highlights:

• A lawsuit accuses Donald Trump of improperly benefiting from crypto deals involving the United Arab Emirates.
• The lawsuit targets a $500 million World Liberty stake sale and a separate $2 billion stablecoin deal.
• The plaintiff wants the disputed payments returned, but a court has not yet ruled on the allegations.

A new lawsuit accuses U.S. President Donald Trump of improperly profiting from two cryptocurrency deals involving the United Arab Emirates (UAE). The case focuses on a $500 million investment in Trump-linked World Liberty Financial and a separate $2 billion transaction involving its USD1 stablecoin.

According to an October 22 Politico report, Joel Greenberg, a former software engineer at stablecoin issuer Circle, filed the lawsuit in federal court in Washington. Greenberg, who reportedly owns about 10,000 Circle shares, argues that the payments violated the U.S. Constitution’s Foreign Emoluments Clause.

据 POLITICO 报道，Circle Internet Group 的一名股东 Joel Greenberg 在联邦法院对美国总统特朗普及其家族共同创立的加密项目 World Liberty Financial 提起诉讼，指控特朗普通过两笔与阿联酋相关的商业交易利用总统职权牟利，违反了美国宪法中的“外国薪酬条款”（Foreign Emoluments…

— 吴说区块链 (@wublockchain12) October 22, 2026

Lawsuit Questions $500 Million World Liberty Stake Sale

The first deal involved the sale of a 49% stake in World Liberty Financial for $500 million shortly before Trump returned to office in January 2025. The lawsuit alleges that money for the investment came from the UAE and that Trump received millions of dollars from the arrangement after taking office. The buyers were linked to the Gulf country’s leadership, according to earlier reporting on the transaction.

Greenberg argues that receiving financial benefits tied to a foreign government while serving as president breaches the Foreign Emoluments Clause. The constitutional provision restricts federal officeholders from accepting certain benefits from foreign governments without approval from Congress. However, the lawsuit’s claims have not been decided by a court. World Liberty previously said Trump did not participate in the stake sale and no longer held a position in the business.

$2 Billion USD1 Stablecoin Deal Also Under Scrutiny

The second transaction involved MGX, a UAE-backed investment fund, and World Liberty Financial’s USD1 stablecoin. MGX used $2 billion worth of USD1 to fund an investment in cryptocurrency exchange Binance. Unlike Bitcoin, a stablecoin such as USD1 aims to maintain a steady value of one U.S. dollar.

The lawsuit alleges that the deal increased demand for USD1, expanded its circulation and helped generate millions of dollars in interest income tied to the stablecoin’s reserves. Greenberg argues that Trump benefited financially from those arrangements. 

Earlier Associated Press reporting explained that funds backing USD1 could be placed in assets such as government bonds, allowing the issuer to earn interest. World Liberty has previously denied that its UAE-related business dealings were connected to U.S. government decisions.

Plaintiff Seeks Recovery of Payments and More Disclosures

Greenberg wants the court to recover funds he alleges Trump received through the transactions. He also seeks information about other foreign payments linked to cryptocurrency business activities and unspecified damages.

The complaint also names World Liberty Financial and Steve Witkoff, Trump’s Middle East envoy, according to reports of the filing. The White House, World Liberty Financial, and Circle had not commented on the lawsuit at the time of reporting.

The legal challenge comes as questions about foreign investment and potential conflicts of interest arise over Trump’s family crypto businesses. The White House has previously rejected those concerns, saying Trump is not involved in day-to-day family business decisions.