Federal Lawsuit Accuses Donald Trump of Unconstitutional Profits in $2 Billion Foreign Crypto Deals
A federal lawsuit filed Thursday in Washington accuses President Donald Trump and his family’s digital currency venture of unconstitutionally taking foreign money through more than $2 billion in transactions linked to the United Arab Emirates. The derivative civil complaint, brought on behalf of competitor Circle Internet Group by shareholder and former employee J. Benjamin Greenberg, alleges that the president violated the U.S. Constitution’s Foreign Emoluments Clause.
“No president in American history has profited from his office so brazenly,” the complaint filed in U.S. District Court alleges. The filing names President Trump, World Liberty Financial, U.S. Middle East Special Envoy Steve Witkoff, and four related limited liability companies as defendants.
Emoluments Allegations and Middle East Ties
The litigation focuses on transactions involving Sheikh Tahnoon bin Zayed Al Nahyan, the national security advisor to the United Arab Emirates. Just days before Trump’s January 2025 inauguration, an entity backed by Tahnoon agreed to purchase a 49% stake in World Liberty Financial for $500 million. Financial disclosures show Trump stood to receive millions of dollars from that transaction after taking office, despite company statements to The Wall Street Journal in January 2026 claiming Trump had no personal involvement in the deal.
The filing further details a purported scheme by an Abu Dhabi-based investment fund chaired by Tahnoon to artificially boost the president’s assets through last year’s purchase of $2 billion in World Liberty’s stablecoin, USD1. An entity affiliated with Trump and his family maintains an approximate 38% ownership stake in World Liberty Financial, which was originally launched alongside members of the Witkoff family in 2024.
The commercial success of the venture contributed heavily to Trump’s personal finances. In his 2025 annual financial disclosure, Trump reported over $1.4 billion in total crypto income, including nearly $800 million tied directly to World Liberty. Meanwhile, retail investors in the company’s governance token, WLFI, saw values plunge from roughly 45 cents in August 2025 down to about 5 cents by late June 2026.
Defense Refutes Claims as Lawmakers Gauge Subpoena Power
Representatives for the White House and World Liberty Financial forcefully rejected the allegations. White House spokesperson Anna Kelly described the action as “yet another frivolous lawsuit that echoes the same, tired narrative that Democrats have pushed against President Trump,” adding that no conflicts of interest exist. Bill Burck, legal counsel for World Liberty Financial, dismissed the suit as sounding “more like a partisan press release,” while company spokesperson David Wachsman maintained that the enterprise complies with all federal laws.
Circle Internet Group explicitly distanced itself from the litigation filed on its behalf. In a public statement, the company confirmed it “didn’t initiate, direct, authorize, or participate in the filing” and declined to comment on active legal proceedings.
Through his attorney Matt Pelikan, Greenberg is asking the court to rule the payments unconstitutional, order full disclosure of all foreign crypto proceeds, and compel the president to return the profits to taxpayers. The legal action coincides with heightened congressional scrutiny, where lawmakers noted that family business transactions could face formal investigation if Democrats secure congressional subpoena power following the 2026 midterm elections.