A Circle shareholder sued Donald Trump and World Liberty Financial over two United Arab Emirates-linked transactions, alleging that they suffered harm from unfair competition.
According to a report by Wu Blockchain citing Bloomberg, the plaintiff alleges that U.S. President Trump violated the constitutional provision barring him from accepting benefits from foreign states. The shareholder argues that the transactions harmed Circle investors and is seeking the return of gains and compensation.
Why is the Binance investment part of the lawsuit?
The lawsuit centers on two transactions: the sale of a 49% stake in World Liberty Financial for $500 million and a $2 billion investment in Binance financed using the company’s USD1 stablecoin. The plaintiff cites these transactions, which they link to the United Arab Emirates, as the basis for the constitutional violation and unfair competition claims.
The shareholder is seeking the return of gains they allege were unlawfully obtained and compensation for the harm they claim to have suffered. Binance is mentioned in the report as the exchange where the investment was made, not as a defendant in the lawsuit.
Statements from Circle and World Liberty
Circle said it was not involved in the lawsuit. This made clear that the legal action came not from the company itself, but from one of its shareholders.
World Liberty Financial denied the allegations. The filing contains the plaintiff’s accusations and demands concerning Trump’s crypto-related transactions.
Not investment advice.