Trump faces lawsuit over foreign crypto profit claims

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Trump lawsuit over crypto profits

Highlights

J. Benjamin Greenberg filed a lawsuit accusing Trump and World Liberty Financial of corruptly profiting from over $2 billion in digital asset deals involving foreign entities.
The complaint centers on two deals with Sheikh Tahnoon bin Zayed Al Nahyan, including a $500 million purchase of a 49% stake and a $2 billion buy of the USD1 stablecoin.
The lawsuit seeks to force Trump to disclose and return any profits deemed illegal foreign emoluments, while World Liberty Financial denies wrongdoing and claims regulatory compliance.

Constitutional challenge targets crypto deals

As reported by CNBC, the lawsuit was filed Thursday in U.S. District Court in Washington by J. Benjamin Greenberg, a shareholder of Circle Internet Group and a former employee of the U.S. crypto company. The complaint accuses Trump and his family’s crypto business, World Liberty Financial, of corruptly profiting from more than $2 billion in digital asset deals linked to foreign money.

The case focuses on two transactions involving Sheikh Tahnoon bin Zayed Al Nahyan, the national security advisor to the United Arab Emirates. According to the lawsuit, an entity backed by Tahnoon agreed days before Trump’s January 2025 inauguration to buy a 49% stake in World Liberty for $500 million, a deal that the complaint says would later generate millions of dollars for Trump after he became president.

The filing also points to an Abu Dhabi-based investment fund chaired by Tahnoon that allegedly boosted the value of Trump’s crypto holdings through a $2 billion purchase last year of World Liberty’s stablecoin, USD1. Greenberg argues that these transactions amount to illegal foreign emoluments under the Constitution.

Company denials and broader business stakes

Matt Pelikan, an attorney at Evergreen Legal, said the lawsuit aims to stop what he called corruption and to require Trump to return profits to American taxpayers. In addition to a court declaration, the suit seeks disclosure of any other foreign crypto-related emoluments Trump has received and repayment of any profits found to be unlawful.

Circle said it was not behind the litigation and does not comment on pending cases, adding through a spokesperson that it did not initiate, direct, authorize or participate in the filing. World Liberty Financial spokesperson David Wachsman told CNBC that the company complies with all U.S. laws and regulations, and said the claims are without merit.

World Liberty Financial was launched in 2024 with members of the Trump and Witkoff families and operates the USD1 stablecoin. An entity affiliated with Trump and his family owns about 38% of the company, underscoring the financial significance of the business as Trump and his family continue expanding their crypto interests during his return to the White House.

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