US President Donald Trump, who has been at the center of criticism due to his activities in the cryptocurrency sector, is now facing a new lawsuit. The plaintiff alleges that Trump illegally profited from billions of dollars worth of deals with foreign investors. The plaintiff claims these transactions violated the Constitution and harmed Circle’s competitive edge.
Trump Faces $2 Billion Lawsuit!
According to CNBC, J. Benjamin Greenberg, a shareholder in the US-based cryptocurrency company Circle Internet Group, has filed lawsuits against Donald Trump, his family’s crypto venture World Liberty Financial (WLFI), and several individuals, including US Special Envoy for the Middle East Steve Witkoff.
A lawsuit filed in Washington, D.C., alleges that Trump unjustly profited from transactions linked to the United Arab Emirates (UAE).
The complaint centers on two transactions linked to UAE National Security Advisor Sheikh Tahnoon bin Zayed Al Nahyan. It alleges that an investment firm connected to Tahnoon made a $500 million deal for a 49% stake in World Liberty Financial just days before Trump took office. The plaintiff claims that this transaction generated over $75.5 million in revenue during Trump’s presidency.
The second transaction involves a $2 billion investment in the Binance exchange by MGX, an Abu Dhabi-based investment fund headed by Tahnoon. The lawsuit alleges that the investment was made through USD1, a stablecoin issued by WLFI.
The plaintiff, Greenberg, argues that the transactions violated a provision of the U.S. Constitution that restricts the acceptance of unauthorized financial benefits from foreign governments. He also claims that the growth of USD1 harmed Circle’s stablecoin, USDC.
White House and WLFI Respond to Allegations!
Speaking to CNBC, White House spokeswoman Anna Kelly claimed the lawsuit was simply a revival of past allegations against Trump and his family. Kelly stated that there was no conflict of interest for Trump.
David Wachsman, speaking on behalf of World Liberty Financial, described the allegations in the lawsuit as unfounded and stated that they await the conclusion of the legal process in court. Wachsman emphasized that the company conducts its operations in compliance with the laws and regulations in force in the United States.
Circle, the issuer of USDC, also stated in a press release that the company has no corporate connection to the legal action initiated by the shareholder. The company explained that Greenberg filed the lawsuit on his own initiative; Circle did not direct, support, or participate in the lawsuit.
*This is not investment advice.
Continue Reading: Major Allegation Against US President Donald Trump and Altcoin Project WLFI! Lawsuit Filed Over $2 Billion in Cryptocurrency Transactions!