A longtime Circle shareholder has taken President Donald Trump to court. The claim is that two UAE-linked deals with his family’s crypto venture violated the Constitution and cost Circle real money.
The suit was filed Thursday. It targets the President and World Liberty Financial, and it centers on the Foreign Emoluments Clause. The plaintiff argues the deals steered stablecoin business away from Circle’s USDC, at an estimated annual cost of $70 million to $82 million.
What the lawsuit alleges
The case was filed in the US District Court for the District of Columbia. Trump is named in his official capacity. World Liberty Financial LLC and its affiliates are also defendants.
The complaint also reaches Steve Witkoff, the US Special Envoy to the Middle East.
Two transactions sit at the heart of the case.
The first is a $500 million sale of a 49% stake in World Liberty. The buyer was an entity associated with Sheikh Tahnoon bin Zayed Al Nahyan. The second came later: Abu Dhabi’s MGX fund made a $2 billion purchase of World Liberty’s USD1 stablecoin.
The plaintiff’s core argument is a competitive one. These deals allegedly handed World Liberty’s stablecoin operation an unfair edge, particularly in access to capital. Circle’s USDC is said to have come out the loser.
The complaint seeks compensatory damages and punitive damages. It also asks for declarations that the alleged constitutional violations took place.
The Emoluments Clause, briefly
The Foreign Emoluments Clause bars federal officeholders from accepting payments or benefits from foreign governments without congressional consent. This lawsuit argues that money tied to Abu Dhabi flowing into a Trump family business fits that description.
The plaintiff is a shareholder in a direct commercial rival. That shareholder says the alleged violation hit a specific balance sheet. The estimated $70 million to $82 million in yearly losses is the plaintiff’s figure. It has not been tested in court.
Background: a family business in a crowded market
World Liberty Financial was co-founded in 2024 by Trump and his sons. Its USD1 stablecoin competes head-to-head with Circle’s USDC. USDC is the more established dollar-pegged token of the two.
Stablecoins are crypto tokens designed to hold a steady value, usually one US dollar. Issuers earn money largely on the reserves backing those tokens. More tokens in circulation means more reserves, and more reserves mean more income. A single $2 billion purchase is therefore a meaningful prize in this business.
Trump’s reported earnings from crypto ventures exceeded $1.4 billion in 2025, according to his financial disclosure. World Liberty in particular has attracted significant foreign investment.
What this means
For now, everything in the complaint is an allegation. The case has not gone to trial. The defendants have not substantially responded in court. Expect motions to dismiss before anyone argues the merits, likely starting with standing and the President’s official-capacity status.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.