Allegations of Foreign Benefits and Diverted Revenue

A former employee of USDC issuer Circle has filed a civil complaint against President Donald Trump, alleging that cryptocurrency transactions tied to the United Arab Emirates enriched the president's business network while harming Circle's commercial prospects. Filed on Oct. 22 in Washington federal court, the Circle shareholder lawsuit contends that the commercial transactions breached the Foreign Emoluments Clause of the U.S. Constitution, which forbids federal officials from taking benefits from foreign states without congressional approval.

The legal action was brought by J. Benjamin Greenberg, who holds 10,000 Class A shares in Circle. According to the court filing, an investment firm named Aryam—allegedly linked to UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan—agreed to pay $500 million for a 49% stake in Trump's crypto enterprise, World Liberty Financial. The filing states that the parties finalized the initial agreement just four days prior to Trump's January 2025 inauguration.

The complaint asserts that $187 million from an initial $250 million installment was routed to entities connected to Trump, with a second $250 million payment due in July 2025. In total, the filing points to $263 million in 2025 equity-sale proceeds directed to two related entities, exceeding their original share of the first payment by approximately $76 million. Greenberg argues this demonstrates that millions of dollars in foreign proceeds reached the president's companies while he was serving in office.

The Role of the USD1 Stablecoin in the Circle Shareholder Lawsuit

Beyond the direct equity purchase, the lawsuit focuses on a $2 billion transaction involving Abu Dhabi-backed investment firm MGX and cryptocurrency exchange Binance. In March 2025, MGX announced plans to invest $2 billion in Binance settled via a stablecoin. World Liberty Financial subsequently launched its USD1 stablecoin on March 25 and confirmed on May 1 that the transaction would settle using the new token.

The complaint notes that USD1's circulating supply expanded by approximately two billion tokens during the eight days preceding World Liberty's announcement, attributing the increase primarily to MGX's cash purchase. According to the lawsuit, holding cash reserves backing USD1 allows World Liberty to capture interest yields on those assets. Greenberg argues that this business was diverted from Circle, which had previously secured a corporate agreement in late 2024 for Binance to adopt USDC for its treasury.

White House Denials and Broader Political Scrutiny

In response to the legal challenge, World Liberty Financial described the claims in the filing as meritless. The White House similarly rejected assertions that the president faces conflicts of interest regarding his digital asset ventures. Courts have not yet ruled on whether the transactions or subsequent executive actions—such as regulatory clearances, a pardon for Binance founder Changpeng Zhao, or approvals for advanced AI chip exports to the UAE—violate federal law.

The legal dispute arrives alongside heightened congressional oversight of cryptocurrency dealings involving government figures. On Oct. 22, Senator Richard Blumenthal initiated an inquiry into stablecoin issuer Tether over reported payments exceeding $6 million to Nxum, a consulting firm co-owned by former White House adviser Bo Hines. The probe centers on potential ethics violations and lobbying efforts linked to the GENIUS Act signed by President Trump in July 2025.