CryptoSlate
A Circle shareholder sued President Donald Trump on Oct. 22 in Washington federal court, alleging that UAE-linked crypto deals enriched his family and diverted business from USDC. The complaint, brought by former Circle employee J. Benjamin Greenberg, who holds 10,000 Class A shares, challenges a $500 million investment in Trump's World Liberty Financial by an Abu Dhabi-linked vehicle and a separate $2 billion transaction in which MGX purchased USD1 to settle its investment in Binance. Greenberg estimates the arrangement cost USDC issuer Circle $70 million to $82 million in potential annual reserve income, based on Circle's reserve returns of 4.1% in 2025.
The filing argues the payments violated the Constitution's Foreign Emoluments Clause, which bars a president from accepting benefits from foreign governments without congressional approval, and states that no president has profited from office so brazenly. It also links the deals to subsequent US decisions favoring the UAE, including advanced AI chip export approvals, a pardon for Binance founder Changpeng Zhao, and regulatory approval for a World Liberty-linked bank. A court has yet to determine whether the transactions or the government decisions violated any law.
Why it matters
The suit is the first serious shareholder action to treat stablecoin reserve economics as the currency of an alleged constitutional violation. The core claim is that USD1 gave foreign states a channel to enrich the president that no ordinary competitor could match, and that Binance steered the $2 billion MGX settlement to USD1 even though the token had not launched when the investment was announced. Binance and World Liberty deny that Binance arranged the use of USD1, and World Liberty has told US senators the deal would otherwise have settled in UAE dirhams.
Market impact
For Circle, the case quantifies the competitive cost of the USD1 deal at $70 million to $82 million in gross annual reserve income, though the filing concedes those figures depend on MGX having selected USDC and on the tokens remaining outstanding.
Frequently asked questions
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Who is suing Trump and on what grounds?
J. Benjamin Greenberg, a former Circle employee holding 10,000 Class A shares, filed the suit on Circle's behalf in Washington federal court, alleging violations of the Foreign Emoluments Clause over UAE-linked crypto deals.
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How much does the lawsuit claim Circle lost from the USD1 deal?
The complaint estimates $70 million to $82 million in potential annual reserve income tied to business it alleges USDC lost, based on Circle's reserve returns of 4.1% in 2025. These are gross figures, not an established net loss.
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What are the two UAE-linked deals named in the complaint?
A $500 million investment in Trump's World Liberty Financial by Aryam, a vehicle linked to UAE national security adviser Sheikh Tahnoon, and a $2 billion MGX investment in Binance settled using World Liberty's USD1 stablecoin.
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What relief is the shareholder seeking?
Greenberg seeks an order blocking further prohibited foreign benefits, requiring Trump-linked companies to account for and surrender disputed proceeds, and damages for Circle, specifically targeting USD1 reserve income held for foreign-state entities.
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What is the biggest legal hurdle for the lawsuit?
Greenberg must first establish derivative standing, meaning his right to sue for Circle without board approval. He argues directors could not independently assess a claim against the president given their regulatory exposure and Circle's relationship with Binance.
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