A shareholder of Circle Internet Financial has filed a federal lawsuit against President Donald Trump, his family's crypto venture World Liberty Financial, and Steve Witkoff, the US Special Envoy to the Middle East.

The case was filed Thursday in the US District Court for the District of Columbia and also names several affiliate entities connected to World Liberty. The suit centers on USD1, the Trump-linked stablecoin, and alleges that foreign money flowing through the token left Circle's USDC unable to compete. Stablecoins are digital tokens designed to hold a fixed value against currencies such as the US dollar, and issuers compete for the transaction flow moving through them — a market this filing now places at the center of a constitutional dispute.

What the Lawsuit Claims

The plaintiff, J. Benjamin Greenberg, says he holds 10,000 ordinary shares of Circle, the company that issues USDC, one of the largest stablecoins on the market. Greenberg alleges that Trump, Witkoff and World Liberty created a pathway for foreign governments to move money through USD1, describing the arrangement as "brazen corruption" that left Circle "unable to compete" in the stablecoin market. The claim is notable because it comes from an individual shareholder rather than from Circle itself.

At the center of the case is MGX, an Abu Dhabi investment firm tied to the United Arab Emirates royal family. In 2025, MGX invested $2 billion into crypto exchange Binance using the USD1 stablecoin. The Wall Street Journal reported in February that another investment vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan agreed to buy a 49% stake in World Liberty for $500 million.

"By accepting hundreds of millions of dollars from a foreign government, the President and his companies have diverted business from [Circle]," Greenberg alleged in the filing.

Relief Sought

Greenberg asks the court to declare that Trump violated the Constitution's Foreign Emoluments Clause, which bars federal officeholders from accepting gifts, payments or other benefits from foreign governments without Congress's consent. He also seeks injunctions that would bar Trump and Witkoff from pursuing similar financial interests without the consent of Congress.

The lawsuit additionally requests an accounting of payments from foreign states to the president and his businesses, an order forcing the companies to give up those payments, and compensatory and punitive damages.

Zach Witkoff, the son of Steve Witkoff, is a co-founder of World Liberty. Trump and his three sons are also co-founders of the crypto venture.

Crypto Deals Become a Campaign Issue

Trump reported that his family's crypto ventures earned him $1.4 billion in 2025. Public Citizen, a consumer advocacy group, reported that the same ventures cost investors about $4.7 billion.

The crypto business is one of several deals drawing scrutiny of the president. Others include his acceptance of a jet from the government of Qatar.

The 2026 midterm elections are less than two weeks away, and early voting has already started in some states. Democrats seeking reelection are using Trump's crypto deals to appeal to voters. Last week, Senator Mark Warner released a campaign ad saying the president made "more than $600 million alone from the crypto memecoin." The new filing adds a legal front to a political fight already playing out on the campaign trail.

Company and White House Responses

A Circle spokesperson said the company "did not initiate, direct, authorize, or participate in the filing." The company declined to comment further on the pending case. A spokesperson for World Liberty did not respond to a request for comment.

White House spokesperson Anna Kelly said Trump has "no conflicts of interest" with his crypto investments and called the lawsuit "frivolous."

The case is in its earliest stage: no court has ruled on the claims, and the requested declaration, injunctions and damages remain pending before the court as election day approaches.

This article is based on reporting by Blockonomi.