Federal Lawsuit Targets Trump-Linked Crypto Venture Over UAE Transactions
A shareholder of Circle Internet Group has filed suit in U.S. federal court against former President Donald Trump and his family's cryptocurrency enterprise, World Liberty Financial. The complaint centers on allegations of unconstitutional foreign payments.
Alleged Constitutional Violations
The lawsuit outlines two primary transactions that form the basis of the legal challenge:
- Trump's sale of a 49% stake in World Liberty Financial for $500 million shortly before his second term, with funds allegedly originating from UAE sources
- A $2 billion purchase of Trump-family digital assets by an investment fund established by the UAE government
These deals are claimed to violate the Foreign Emoluments Clause of the U.S. Constitution, which prohibits federal officials from accepting benefits from foreign states without congressional consent.
Expanded Defendant List and Relief Sought
The legal action names multiple parties, including Trump's Middle East envoy Steve Witkoff as a co-defendant. The plaintiff seeks three forms of judicial relief:
First, disgorgement. The complaint demands Trump return all proceeds from the questioned transactions.
Second, disclosure. Full transparency regarding any cryptocurrency payments from foreign entities to Trump or his businesses.
Third, damages. While unspecified in amount, the suit includes claims for monetary compensation.
This litigation emerges as Trump considers another presidential run, adding political dimensions to the legal proceedings. No official response has yet been issued by Trump's representatives regarding the allegations.