Lawsuit claims Trump family crypto firm broke foreign emoluments law

A federal civil complaint filed in U.S. District Court in Washington alleges that President Donald Trump and World Liberty Financial violated the Constitution's Foreign Emoluments Clause by profiting from over $2 billion in digital currency deals with United Arab Emirates officials. The suit, brought by Circle Internet Group shareholder J. Benjamin Greenberg, argues that these transactions constitute illegal foreign emoluments without congressional consent.

The legal action centers on two primary interactions involving Sheikh Tahnoon bin Zayed Al Nahyan, the UAE national security advisor. Days before Trump's January 2025 inauguration, an entity backed by Tahnoon agreed to purchase a 49% stake in World Liberty Financial for $500 million. Although World Liberty Financial told The Wall Street Journal that Trump had no involvement in the deal's formation, his financial disclosures indicate he received millions of dollars from the purchase after assuming office.

The complaint further describes a scheme by an Abu Dhabi-based investment fund chaired by Tahnoon to inflate the value of Trump's crypto holdings. This allegedly occurred through the fund's purchase of $2 billion in World Liberty's USD1 stablecoin last year. Matt Pelikan, an attorney at Evergreen Legal, stated that the conduct is brazenly corrupt and that the lawsuit seeks to force Trump to return any illegal profits to American taxpayers.

Circle Internet Group, a publicly traded competitor of World Liberty Financial, denied initiating the suit. A company spokesperson stated that Circle did not direct, authorize, or participate in the filing, despite Greenberg filing derivatively on its behalf. The suit names Trump, World Liberty Financial, U.S. Middle East Special Envoy Steve Witkoff, and four related limited liability companies as defendants.

David Wachsman, a World Liberty Financial spokesperson, rejected the claims as without merit. He emphasized that the company complies with all U.S. laws and regulations and that no employee works for the U.S. government. The White House and a spokesperson for Witkoff did not immediately respond to requests for comment.

World Liberty Financial, launched in 2024 with members of the Trump and Witkoff families, operates the USD1 stablecoin. An entity affiliated with Trump and his family owns approximately 38% of the company. Trump reported more than $1.4 billion in crypto income in his 2025 annual financial disclosure, with nearly $800 million tied to World Liberty. Meanwhile, the company's WLFI token fell from about 45 cents in August 2025 to roughly 5 cents by the end of June 2026.

The lawsuit seeks a court declaration that the profits violate the Constitution and requires Trump to disclose all other foreign crypto emoluments. The case follows months of scrutiny over the administration's expansion of UAE access to advanced U.S. AI chips, including for G42, a state-backed AI company controlled by Tahnoon. Lawmakers have signaled that further investigation into Trump family business transactions could occur if Democrats gain subpoena power in Congress during the 2026 midterm election.