Two former advisors to US President Donald Trump are facing legal action from cryptocurrency investors following the collapse of two politically themed digital asset projects.
Trump Insiders Face Court Over Unregistered Crypto Tokens
16 February 2026 - 08:50 CET
Steve Bannon, a former White House chief strategist, and Boris Epshteyn, a strategic advisor, are accused of using their political influence to promote unregistered tokens.
A proposed class action lawsuit, filed on 12 Feb in the US District Court for the District of Columbia, alleges the defendants targeted their political supporters to sell the tokens Patriot Pay and Let's Go Brandon Coin. Bannon reaches a large audience through his media firm, War Room, which is also named as a defendant in the lawsuit. Epshteyn served as a senior advisor during the 2016 and 2020 presidential campaigns, continuing to counsel the president on various occasions.
The plaintiffs claim the pair used the trust of their followers to encourage the purchase of these digital assets without properly disclosing their own direct involvement and ownership of the projects.
Centralised control and abrupt closure
The legal complaint, filed by Missouri cryptocurrency investor Andrew Barr, outlines how the defendants allegedly took control of the token projects in secret. Barr, represented by lawyer Constantine Economides, states he personally lost over $58,000 on the digital assets promoted by Bannon and Epshteyn.
While the tokens were presented to the public as a way to circumvent the traditional banking system, the lawsuit suggests the underlying mechanics were highly centralised. The legal filings allege that the insiders maintained strict control over the operational aspects of the cryptocurrencies, including smart contracts and fee routing.
After securing substantial investments from their followers, the operators reportedly disabled trading and shut down the entire operation abruptly in 2025. Although investors were explicitly promised a distribution of the remaining project liquidity, the lawsuit claims these payouts were never made, and the funds were retained by the defendants.
Bannon and Epshteyn are now facing serious accusations of violating federal securities laws, consumer protection rules and other regulations. The case highlights the ongoing regulatory risks associated with politically themed cryptocurrencies and the legal liabilities of promoting unregistered tokens to retail investors. Sandmark will continue to monitor the legal proceedings as they unfold in Washington.
