Lawsuit accuses Trump of illegally profiting from foreign crypto deals

Shareholder alleges president violated Constitution's Foreign Emoluments Clause through World Liberty Financial transactions with UAE-linked entities

By LineZotpaper

Published22 October 2026

Read Time3 min

A federal lawsuit filed Thursday accuses President Donald Trump and his family's crypto company, World Liberty Financial, of illegally profiting from more than $2 billion in digital currency deals with foreign entities, in violation of the Constitution's Foreign Emoluments Clause. The complaint, brought by a shareholder of rival crypto firm Circle Internet Group, centers on transactions with an Abu Dhabi investment fund chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security advisor.

The lawsuit, filed in U.S. District Court in Washington by shareholder J. Benjamin Greenberg, alleges that World Liberty Financial engaged in two "illegal foreign emoluments" involving UAE-backed entities. Days before Trump's January 2025 inauguration, a fund backed by Tahnoon agreed to buy a 49% stake in World Liberty for $500 million. The suit also highlights a scheme in which an Abu Dhabi-based investment fund chaired by Tahnoon purchased $2 billion in World Liberty's stablecoin, USD1, allegedly to inflate the value of Trump's crypto holdings.

Trump would receive millions of dollars from the stake purchase after becoming president, according to his financial disclosures. The lawsuit seeks a court declaration that Trump's profits are unconstitutional and demands he disclose all foreign crypto emoluments and return any illegal gains.

"No president in American history has profited from his office so brazenly," the complaint alleges. Greenberg's attorney, Matt Pelikan of Evergreen Legal, said: "What President Trump did is brazenly corrupt. He's made millions from these deals by selling out the American people. We're suing to stop the corruption and to force President Trump to return the profits to American taxpayers."

The White House dismissed the lawsuit as frivolous. "This is yet another frivolous lawsuit that echoes the same, tired narrative that Democrats have pushed against President Trump, his family, and his administration for a decade," spokesperson Anna Kelly said. "There are no conflicts of interest."

World Liberty Financial also denied the claims. "World Liberty Financial is compliant with all U.S. laws and regulations," spokesperson David Wachsman said. "No one at World Liberty Financial works for the U.S. Government. These claims are without merit and we look forward to resolving them in court."

Circle, the company on whose behalf Greenberg filed derivatively, said it did not initiate or authorize the lawsuit and does not comment on pending litigation.

The venture has drawn particular scrutiny over its UAE ties. Months after Tahnoon's 2025 investment, the administration expanded UAE access to advanced U.S. AI chips, including for G42, a UAE state-backed AI company controlled by Tahnoon. Trump reported more than $1.4 billion in crypto income in his 2025 annual financial disclosure, including nearly $800 million tied to World Liberty. WLFI tokens have fallen sharply, from about 45 cents in August 2025 to about 5 cents by June 2026.

Analysis

Why This Matters

The lawsuit directly tests the Constitution's Foreign Emoluments Clause, which has rarely been litigated at the presidential level. A ruling against Trump could force him to return profits and reshape how presidents may conduct business while in office.
The case highlights the intersection of Trump's business interests, cryptocurrency, and foreign policy, particularly with the UAE. U.S. lawmakers have signaled they may investigate further if Democrats gain subpoena power after the 2026 midterm election.
The outcome could set a precedent for future presidents and their families regarding acceptance of money from foreign government-linked entities.

Background

The Foreign Emoluments Clause of the U.S. Constitution forbids federal officeholders from accepting gifts, payments, or other benefits from foreign governments or their representatives without congressional consent. The clause has been the subject of multiple lawsuits against Trump during his first term, but courts often declined to rule on the merits on procedural grounds. World Liberty Financial, co-founded by Trump family members and Middle East envoy Steve Witkoff's family, launched in 2024 and operates the USD1 stablecoin. Trump and his family own about 38% of the company.

Key Perspectives

Plaintiff and Shareholder: J. Benjamin Greenberg, a former Circle employee, alleges Trump has "corruptly profited" by selling influence to foreign entities, violating constitutional restrictions. The suit seeks to force Trump to return illegal gains and disclose all foreign crypto dealings. White House and Trump Administration: Officials dismiss the lawsuit as a politically motivated "frivolous" action with no basis. They maintain there are no conflicts of interest and that the president's business dealings are lawful. World Liberty Financial: The company asserts it is compliant with all U.S. laws and regulations, noting it is a private entity not part of the government. It looks forward to resolving the claims in court. Critics and Watchdogs: Ethics experts and Democratic lawmakers have long warned that Trump's continued business interests create conflicts of interest, especially when foreign governments may seek to influence U.S. policy through business deals. The Trump administration's expansion of AI chip access to UAE entities after Tahnoon's investment has drawn particular concern.

What to Watch

Whether the court allows the derivative lawsuit to proceed or dismisses it on standing grounds, as has happened with similar emoluments cases.
Any response from Congress, particularly if Democrats win subpoena power in the 2026 midterms, which could lead to hearings or further investigations.
Movement in World Liberty Financial's token price and the company's financial disclosures, which could indicate ongoing foreign investment or volatility.

Sources

Lawsuit accuses Trump of illegally profiting off foreign crypto deals · US Top News and Analysis

Checked

12 claims in this story checked against 1 source: 11 supported.

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SupportedThe lawsuit accuses Trump and his family’s crypto company of illegally profiting from more than $2 billion in foreign digital-currency deals in violation of the Foreign Emoluments Clause.US Top News and Analysis: “A lawsuit filed Thursday accuses President Donald Trump and his family's crypto company of "corruptly profiting" off more than $2 billion in digital currency -related deals, violating constitutional restrictions on accepting foreign money.”
Partly supportedThe story describes the transactions as involving an Abu Dhabi investment fund chaired by Tahnoon.US Top News and Analysis: “Days before Trump's inauguration in January 2025, an entity backed by Tahnoon ... agreed to buy a 49% stake in World Liberty for $500 million. ... an Abu Dhabi-based investment fund chaired by Tahnoon”
SupportedDays before Trump’s January 2025 inauguration, an entity backed by Tahnoon agreed to buy a 49% stake in World Liberty for $500 million.US Top News and Analysis: “Days before Trump's inauguration in January 2025, an entity backed by Tahnoon ... agreed to buy a 49% stake in World Liberty for $500 million.”
SupportedThe lawsuit alleges that a fund chaired by Tahnoon bought $2 billion in USD1 to inflate the value of Trump’s crypto holdings.US Top News and Analysis: “The lawsuit also highlights a "scheme" by an Abu Dhabi-based investment fund chaired by Tahnoon to "inflate the value of President Trump's crypto holdings" through last year's purchase of $2 billion in World Liberty's stablecoin, USD1.”
SupportedThe complaint says, “No president in American history has profited from his office so brazenly.”US Top News and Analysis: “"No president in American history has profited from his office so brazenly," alleges the federal civil complaint”
SupportedGreenberg’s attorney Matt Pelikan said, “What President Trump did is brazenly corrupt. He's made millions from these deals by selling out the American people. We're suing to stop the corruption and to force President Trump to return the profits to American taxpayers.”US Top News and Analysis: “"What President Trump did is brazenly corrupt. He's made millions from these deals by selling out the American people," Matt Pelikan, an attorney at Evergreen Legal representing Greenberg, said in a statement to CNBC. "We're suing to stop the corruption and to force President Trump to return the profits to American taxpayers," Pelikan said.”
SupportedWhite House spokesperson Anna Kelly called the lawsuit frivolous and said, “There are no conflicts of interest.”US Top News and Analysis: “"This is yet another frivolous lawsuit that echoes the same, tired narrative that Democrats have pushed against President Trump, his family, and his administration for a decade," White House spokesperson Anna Kelly told CNBC in a statement. "There are no conflicts of interest."”
SupportedWorld Liberty spokesperson David Wachsman said, “World Liberty Financial is compliant with all U.S. laws and regulations,” and that the claims were without merit.US Top News and Analysis: “"World Liberty Financial is compliant with all U.S. laws and regulations," David Wachsman, a World Liberty spokesperson, told CNBC. "No one at World Liberty Financial works for the U.S. Government. These claims are without merit and we look forward to resolving them in court."”
SupportedCircle said it did not initiate or authorize the lawsuit and does not comment on pending litigation.US Top News and Analysis: “The company said in a statement to CNBC it was not behind the lawsuit and does not comment on pending litigation. "Circle did not initiate, direct, authorize, or participate in the filing," the company said via a spokesperson.”
SupportedThe lawsuit seeks a declaration that Trump’s profits violate the Constitution and asks him to disclose other foreign crypto emoluments and return any illegal profits.US Top News and Analysis: “In addition to seeking a court declaration that Trump's profits violate the Constitution, Greenberg wants the president to disclose all other foreign crypto emoluments he's received and return any profits found to be illegal.”
SupportedTrump reported more than $1.4 billion in crypto income in his 2025 financial disclosure, including nearly $800 million tied to World Liberty.US Top News and Analysis: “Trump reported more than $1.4 billion in crypto income in his 2025 annual financial disclosure, including nearly $800 million tied to World Liberty.”
SupportedWLFI fell from about 45 cents in August 2025 to about 5 cents by June 2026.US Top News and Analysis: “WLFI, meanwhile, fell from about 45 cents in August 2025 to about 5 cents by the end of June 2026.”