From The Verge · Gaby Del Valle · · 1m 40s
San Francisco sues Trump Media over insider trading scheme
The city alleges Truth Social's paid early-access API lets wealthy investors profit from the president's market-moving posts.
In brief
The city alleges Truth Social's paid early-access API lets wealthy investors profit from the president's market-moving posts. Trump Media is selling early access to Trump's posts for $100,000 a month, which San Francisco says violates insider trading laws and gives rich investors unfair advantage over everyday people…
San Francisco sues Trump Media
The city filed a lawsuit today accusing Trump Media of running a corrupt business scheme by selling early access to Trump's posts on Truth Social.
Truth API charges $100,000 monthly
Trump Media launched Truth API, which charges select customers $100,000 per month for early access to the 10 most influential accounts on Truth Social, including Trump's.
“markets already move on Truth Social posts”
Trump's posts move global markets
Trump often makes high-stakes announcements as president on Truth Social. On August 21st, he posted about lowering ground beef prices, and cattle futures declined significantly when markets opened.
Early access creates unfair advantage
San Francisco argues Truth API is a pay-to-play scheme that gives wealthy hedge funds and investors early access to market-moving government statements, disadvantaging everyday investors.
“In today's markets, early access means millions of dollars. This business scheme has turned public trust into private property.”
Lawsuit cites federal ethics laws
San Francisco's complaint alleges Truth API violates federal anti-corruption laws that prohibit insider trading, as well as California's Unfair Competition Law.
Trump Media faces financial pressure
Trump Media reported a net loss of over $238 million earlier this year. San Francisco alleges Truth API is an attempt to make the struggling company profitable.
San Francisco seeks to ban the service
The city has asked a judge to forbid Trump Media from offering Truth API or similar services and to impose a fine of $2,500 per violation of California's Unfair Competition Law.
The essence
Trump Media is selling early access to Trump's posts for $100,000 a month, which San Francisco says violates insider trading laws and gives rich investors unfair advantage over everyday people.
