Circle Shareholders Sue Trump and World Liberty for Over $2 Billion in Profits from UAE Crypto Transactions
Circle Internet Group shareholder J. Benjamin Greenberg has filed a derivative lawsuit in federal court in Washington, accusing Trump and World Liberty Financial of profiting from over $2 billion in crypto transactions related to the UAE, violating foreign compensation clauses.
The lawsuit focuses on two transactions: a $500 million acquisition of a 49% stake in World Liberty by an investment vehicle backed by Sheikh Tahnoon, and a $2 billion investment settlement by Abu Dhabi's MGX Fund using World Liberty's USD1 stablecoin.
The plaintiff claims these transactions funneled funds to Trump after he took office, inflated the value of his crypto assets, and harmed Circle and its USDC stablecoin's competitive position.
Trump's 2025 financial disclosure shows his crypto-related income exceeds $1.4 billion, including earnings related to World Liberty.
Defendants also include Middle East envoy Steve Witkoff and related entities, with the lawsuit seeking to recover related profits and prohibit similar transactions without congressional approval.
A spokesperson for World Liberty stated that the company complies with U.S. law, calling the allegations baseless, asserting that Trump was not involved in the equity transaction and currently holds no company position.
Funds flowed from UAE state-related entities to Trump's family crypto business, expanding stablecoin circulation and putting pressure on Circle as a competitor.
Source: Public Information
ABAB AI Insight
The Trump family founded World Liberty Financial in 2024, launching the USD1 stablecoin and governance token, and engaging in large-scale equity and stablecoin transactions with UAE-related entities. As the issuer of USDC, Circle directly competes with World Liberty in the stablecoin market, previously benefiting from policies of the Trump administration that boosted the crypto industry overall.
In terms of capital flow, UAE state-related funds injected money into World Liberty through equity acquisitions and large stablecoin purchases, expanding the circulation of USD1 and enhancing its asset value. Related profits have continued to flow to family entities after Trump's inauguration, creating a direct link between foreign funds and domestic crypto businesses.
Similar cases include historical lawsuits regarding foreign compensation clauses and market share competition among stablecoin issuers in the crypto industry (such as USDC versus other dollar-pegged stablecoins). We are currently in a phase where personal crypto businesses of U.S. presidents intersect with foreign sovereign funds, intensifying competition in the stablecoin market.
Essentially, this involves a transfer of pricing power and a test of regulatory boundaries: foreign sovereign funds entering U.S. officials' related businesses through crypto transactions challenge constitutional restrictions on foreign payments while altering the flow of funds and competitive landscape in the stablecoin market.
ABAB News · Cognitive Law
- Foreign funds entering officials' related businesses trigger constitutional boundaries
- Large stablecoin transactions can quickly change market competitive positions
- Derivative lawsuits transform personal trading risks into shareholder claims.