President Trump, World Liberty Financial Sued Over $2.5 Billion UAE Crypto Deals: Report
President Donald Trump and his family-backed cryptocurrency venture, World Liberty Financial , face a federal lawsuit alleging constitutional violations tied to $2.5 billion in cryptocurrency deals linked to the UAE.The lawsuit filed Thursday by a Circle Internet Group shareholder J. Benjamin Greenberg, accuses Trump of improperly profiting from foreign government-linked transactions while serving as president.Greenberg, a former Circle software engineer owning almost 10,000 shares, alleges that Trump violated the Constitution’s Foreign Emoluments Clause that prohibits presidents from accepting benefits from foreign governments without congressional approval.The lawsuit centers on two transactions:The sale of a 49% stake in WLFI for $500 million, allegedly funded through the UAE before Trump’s second term began. Trump continued receiving millions in payouts from the transaction after taking office.A $2 billion purchase of the Trump family’s stablecoin by a UAE government-created investment fund.The lawsuit alleges the transaction artificially boosted the value of Trump’s cryptocurrency holdings while generating millions in interest income.“No president in American history has profited from his office so brazenly,” the complaint states as reported by Politico.How Did WLFI Respond?World Liberty spokesperson David Wachsman rejected the allegations, maintaining that the company complies with U.S. laws and regulations.He earlier said Trump was not involved in the transaction and currently holds no role at the company.White House spokesperson Anna Kelly also dismissed the lawsuit as frivolous, denying any conflicts of interest.Steve Witkoff, Trump’s Middle East special envoy, is also named as a defendant.Meanwhile, Circle distanced itself from the litigation, stating that it neither initiated nor authorized the filing.What’s At Stake For Trump’s Crypto Holdings?Greenberg seeks to force Trump to surrender payments from the disputed deals, disclose other foreign crypto payments and pay unspecified damages.The lawsuit argues that stablecoins and reserve yields cannot shield transactions from constitutional scrutiny.Preview Image: Shutterstock