Lawsuit Claims Trump Profited Illegally from Foreign Crypto Deals

A new federal lawsuit filed on Thursday accuses former President Donald Trump and his family’s cryptocurrency venture of unlawfully gaining profits from foreign digital currency transactions worth over $2 billion. The complaint alleges that these dealings breach the U.S. Constitution’s restrictions on receiving payments from foreign entities while holding federal office.

The suit was submitted in the U.S. District Court in Washington by J. Benjamin Greenberg, a shareholder in Circle Internet Group—a publicly traded American cryptocurrency company that competes with Trump’s World Liberty Financial. Greenberg, who also previously worked for Circle, claims that Trump’s conduct represents unprecedented profiteering from the presidency.

Central to the complaint are two transactions described as illegal foreign emoluments involving World Liberty Financial and Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security advisor. Known as the “Spy Sheikh” due to his intelligence background, Tahnoon’s affiliated entity agreed to purchase a 49 percent stake in World Liberty for $500 million just days before Trump’s inauguration in January 2025. Despite World Liberty’s statement to The Wall Street Journal in January 2026 denying Trump’s involvement in the deal, financial disclosures reveal that Trump stood to earn millions from this investment after assuming office.

Additionally, the lawsuit points to a scheme orchestrated by an Abu Dhabi-based investment fund led by Tahnoon. This fund reportedly bought $2 billion worth of World Liberty’s stablecoin, USD1, in 2025 with the intent to artificially boost the value of Trump’s crypto holdings.

The legal action asserts these transactions violate the Foreign Emoluments Clause of the U.S. Constitution, which prohibits federal officials from accepting gifts or payments from foreign governments without congressional approval. The complaint seeks a court ruling affirming that Trump’s profits are unconstitutional, demands that he disclose all foreign crypto income, and requests the return of any ill-gotten gains to the American people.

In response, Bill Burck, attorney for World Liberty Financial at Quinn Emanuel, dismissed the lawsuit as baseless and driven by political motives. He stated, "All we know about it is from media reports. Anyone can file a lawsuit in America, even a frivolous one." White House spokesperson Anna Kelly echoed this sentiment, labeling the case as another politically motivated attack lacking merit.

Matt Pelikan, an attorney representing Greenberg from Evergreen Legal, strongly criticized Trump’s actions, calling them brazenly corrupt and accusing the former president of profiting by betraying American interests. Pelikan emphasized that the lawsuit aims to halt such corruption and recover profits for taxpayers.

The complaint also names U.S. Middle East Special Envoy Steve Witkoff along with several related limited liability companies linked to the Trump family’s crypto enterprise. While Circle Internet Group clarified it did not initiate or authorize the lawsuit, World Liberty Financial affirmed its compliance with U.S. laws and denied any government affiliation or wrongdoing.

Since Trump’s return to the presidency, his family’s crypto business has grown rapidly. World Liberty Financial, launched in 2024 alongside members of the Trump and Witkoff families, manages the USD1 stablecoin. An entity connected to Trump owns about 38 percent of the company. Despite significant losses suffered by investors in the company’s governance token WLFI, Trump reported more than $1.4 billion in crypto income in his 2025 financial disclosures, which included nearly $800 million related to World Liberty.

The venture has drawn attention due to its connections with the UAE. Shortly after Tahnoon’s investment in 2025, the U.S. government expanded the UAE’s access to advanced artificial intelligence chips, including to G42, a UAE state-backed AI firm controlled by Tahnoon. These ties have prompted U.S. lawmakers to seek further information, with some indicating that Trump family business dealings could face intensified congressional scrutiny if Democrats secure subpoena authority following the 2026 midterm elections.

This lawsuit adds to ongoing debates about the ethical and legal boundaries of foreign investments and presidential business interests, highlighting concerns over transparency and potential conflicts between public duty and private gain in the emerging digital currency sector.