Latest Crypto News on Who Sued and Why In the latest crypto news, the Circle shareholder lawsuit Trump faces began in a Washington court on October 22, 2026. J. Benjamin Greenberg, a Circle s
Latest Crypto News on Who Sued and Why
In the latest crypto news, the Circle shareholder lawsuit Trump faces began in a Washington court on October 22, 2026. J. Benjamin Greenberg, a Circle shareholder and former worker, filed the case.
According to an update from The Block X Account, he sued President Donald Trump and World Liberty Financial, as CNBC and Benzinga reported; other linked companies are also named in the suit.
The case says UAE-linked crypto deals worth over $2 billion broke the Foreign Emoluments Clause; this rule in the Constitution bars federal officials from taking money from foreign governments. Congress must approve such payments first.
The filing names the crypto venture and its holding firms, WLF Holdco and Stablecoin Holdco. It is also named DT Marks DEFI LLC; the case says this firm collects World Liberty revenue for the Trump family.
Steve Witkoff, the U.S. envoy to the Middle East, is accused of helping set up the deals, according to Quartz and Coin-Turk. Greenberg filed the claim for Circle, which competes with the USD1 issuer in the stablecoin market.
He asks the court to return the president’s earnings from the deals; he also wants more facts on other foreign crypto payments.
A firm backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE national security adviser, agreed to buy 49% of the Trump family crypto firm for $500 million; the deal came days before the January 2025 inauguration.
The Wall Street Journal first reported the deal; the Circle shareholder lawsuit Trump faces calls this purchase a foreign payment that the Constitution does not allow.
Quartz notes that the suit also points to later government steps. One is an August approval from a Treasury bureau for a World Liberty trust bank; the Trump family owns this bank with the UAE government.
The second deal involves MGX, an Abu Dhabi fund led by Tahnoon. In 2025, the fund put $2 billion into the Binance exchange; it paid with USD 1, the stablecoin issued by the Trump family crypto firm.
The case calls this a plan to raise the value of the president’s crypto holdings. News reports say Trump listed over $1.4 billion in crypto income for 2025; more than $500 million of that came from World Liberty token sales.
USDC from Circle and USD1 from the Trump-linked issuer compete for users in crypto trading and payments. They also compete for large financial firms that move money on blockchains.
Greenberg says the MGX purchase put more USD into use; he says this helped World Liberty owners and hurt Circle. For the wider crypto industry, the Circle shareholder lawsuit Trump faces mixes stablecoin market share, politics, and foreign money in one case.
The outcome matters for exchanges, issuers, and investors who watch legal risk.
Circle said a single shareholder filed the suit; the company said it did not approve the case or join it. White House spokesperson Anna Kelly called the Circle shareholder lawsuit Trump now faces frivolous.
She said the president has no conflicts of interest in his crypto investments. World Liberty said it follows all U.S. laws; it also said nobody at the company works for the federal government. The firm added that Trump took no part in the stake sale and holds no role at the company.
The first step to watch is whether the defendants ask the court to dismiss the case. This is common in shareholder suits, because the plaintiff’s right to act for the company is often challenged.
Crypto news in the coming weeks will likely focus on that stage of the Circle shareholder lawsuit and the Trump case. Traders also track USD1 supply, Binance disclosures, and any new action on the World Liberty trust bank; each of these could shift the mood around stablecoin issuers.
YMYL Disclaimer: This article is for informational purposes only and is not financial or investment advice. Readers should verify details through official channels and do their own research before making any decision.
