Lawsuit Accuses Trump of Foreign Emoluments Linked to Crypto Deals Including $2 Billion Investment
Key Facts
CNBC reported that a new lawsuit accuses President Donald Trump and World Liberty Financial of illegally profiting from foreign cryptocurrency deals, in allegations involving Sheikh Tahnoon bin Zayed Al Nahyan of the United Arab Emirates. The case's background involves transactions including a $2 billion investment by MGX in Binance, for which World Liberty's stablecoin was selected for settlement. Reuters quoted World Liberty co-founder Zach Witkoff as saying, "USD1 has been selected as the official stablecoin to close MGX's $2 billion investment in Binance." The sum represents the value of the investment in the exchange, rather than personal profits for Trump. Binance said in its statement that the investment gave MGX a minority stake in the exchange and marked the company's first foray into the cryptocurrency and blockchain sectors. World Liberty launched its stablecoin in March 2025, according to a letter from Senators Elizabeth Warren and Jeff Merkley concerning the deal.
In a separate transaction involving ownership of World Liberty itself, The Wall Street Journal reported that an investment linked to Tahnoon amounted to $500 million for a 49% stake in the company. That deal was signed before Trump's inauguration for his second term, according to the newspaper, adding a direct investment link to the venture to the background of transactions involving its stablecoin. Congressional scrutiny had previously extended to MGX's investment in Binance, with Warren and Merkley requesting additional information and documents from the two companies about it. The senators wrote in their letter, "We request additional information and documents from MGX and Binance regarding the investment." Meanwhile, an earlier statement from Senator Jack Reed's office cited World Liberty and the White House's position that the president plays no role in the company's decisions and that they reject conflict-of-interest concerns.
The allegations reported by CNBC rest on the constitutional prohibition on receiving foreign emoluments without congressional consent. The U.S. Justice Department's Office of Legal Counsel explains that the Emoluments Clause prohibits government officials from accepting "any kind of payment from a foreign government, except with the consent of Congress." This interpretation ties the prohibition to payments originating from a foreign government, with an exception subject to legislative consent. Trump has a legal history on this issue, having faced foreign emoluments lawsuits during his previous presidency. According to The Associated Press, the Supreme Court ordered appeals courts to dismiss those lawsuits as moot after he left office, linking the cases' dismissal at the time to the end of his presidency.