Circle shareholder sues Trump over $2 billion in UAE-linked crypto deals

A Circle shareholder sued President Trump and World Liberty Financial in federal court in Washington on Oct. 22, alleging that "more than $2 billion in payments from a foreign government" through crypto deals linked to the United Arab Emirates violated the Constitution [1, p. 1]. The suit invokes the foreign emoluments clause, which bars federal officials from accepting payments from foreign governments without Congress's consent [1, ¶94].

It is a derivative suit: a shareholder sues on the company's behalf, claiming the board will not, and any recovery goes to the company. Circle Internet Group is named only as a "nominal defendant," a party included so any recovery can flow to it, not one accused of wrongdoing; the complaint says no claims are asserted against it [1, p. 7; ¶136]. The case, Greenberg v. Trump, No. 1:26-cv-03686 in the U.S. District Court for the District of Columbia, lists nine parties, including World Liberty affiliates and special envoy Steven Witkoff [4]. Circle said it "did not initiate, direct, authorize, or participate in the filing," it told CNBC [2].

The complaint alleges two transactions. Before the inauguration, it says, the president agreed to sell part of his family's crypto company for $500 million "routed from the United Arab Emirates" [1, p. 2]. After he took office, it alleges, an investment fund created by the government of Abu Dhabi bought $2 billion of World Liberty's USD1 stablecoin [1, p. 2; ¶4]. USD1 is a dollar-backed token that the complaint calls a direct competitor of Circle's USDC [1, ¶119].

The shareholder argues Circle was hurt as a competitor, putting its lost reserve income at about $70 million to $82 million a year [1, ¶248; ¶260]. He claims asking Circle's board to sue would have been futile [1, ¶13; ¶186]. He seeks a declaration, an injunction, an accounting and disgorgement of the alleged emoluments, and damages [1, ¶14; pp. 67-68].

World Liberty spokesperson David Wachsman told CNBC: "These claims are without merit and we look forward to resolving them in court" [2]. None of the allegations has been tested in court. Politico reported the suit earlier Thursday [3].

The docket shows only the complaint, with a jury demand, and no judge assigned yet [4]. The next marker is the defendants' first filing in response.

Sources

1. Verified complaint, Greenberg v. Trump et al., U.S. District Court for the District of Columbia, Document 1, filed Oct. 22, 2026, 70 pp. (copy hosted by CNBC), https://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2026/10/22/Emoluments_Lawsuit_102226.pdf, accessed Oct. 22, 2026, 1:13 p.m. ET.
2. CNBC, Oct. 22, 2026, 12:49 p.m. ET, https://www.cnbc.com/2026/10/22/trump-world-liberty-crypto-lawsuit-uae.html, accessed Oct. 22, 2026, 1:13 p.m. ET.
3. Politico, "Crypto shareholder sues Trump, family-backed crypto venture," Oct. 22, 2026, 9:36 a.m. ET (Politico's published timestamp; page returned 403 to Le Coin, listing checked Oct. 22, 2026, 1:38 p.m. ET), https://www.politico.com/news/2026/10/22/donald-trump-lawsuit-crypto-world-liberty-financial-01131555.
4. CourtListener (RECAP) search API, docket 75002506, Greenberg v. Trump, No. 1:26-cv-03686 (D.D.C.), filed Oct. 22, 2026, entry 1, https://www.courtlistener.com/api/rest/v4/search/?type=r&q=docket_id:75002506, accessed Oct. 22, 2026, 1:38 p.m. ET.

Holding the Corner.

Not financial advice.