Trump Allies Bannon and Epshteyn Sued Over ‘Patriot Pay’ Token Fraud Allegations
U.S. investor Andrew Barr filed a class-action suit in federal court in Washington accusing Steve Bannon, Boris Epshteyn, Bannon’s media company War Room, Let‘s Go Brandon Coin LLC and Patriot Pay LLC of defrauding thousands of investors by selling an unregistered crypto token. The token, originally named Let’s Go Brandon Coin (FJB) and later rebranded to Patriot Pay (PPY), was promoted using the defendants’ public platforms and political influence, the complaint says. The plaintiff alleges more than $58,000 in personal losses, claims defendants hid key risks and governance facts, and accuses them of violating securities and consumer protection laws. The suit states trading was halted in early 2025, the project was announced closed, and promised distributions of remaining liquidity have not occurred. The plaintiff seeks to represent thousands of retail investors nationwide to recover damages. Primary keywords: Patriot Pay, Let’s Go Brandon Coin, FJB, PPY, unregistered token, class-action, Steve Bannon, Boris Epshteyn. Secondary/semantic keywords: crypto fraud, securities law, investor losses, token suspension, liquidity distribution.
Bearish
The lawsuit increases regulatory and reputational risk for politically linked tokens and memecoins. Allegations that a widely promoted token was unregistered, halted trading, and failed to return promised liquidity are likely to reduce investor confidence in similar projects, especially those driven by personalities rather than clear utility or governance. Short-term effects: increased sell pressure on small-cap tokens and memecoins, higher volatility, and elevated liquidation risk for leveraged positions as traders rush to cut exposure. Exchanges and OTC desks may delist or restrict tokens tied to legal controversies, reducing liquidity further. Long-term effects: greater scrutiny from regulators, potential tightening of enforcement around promotional activity and token registrations, and a possible shift of retail capital away from celebrity-driven tokens toward more established projects (BTC, ETH) or regulated products. Historical parallels include legal actions and crashes around celebrity-endorsed or influencer-driven tokens, which produced prolonged price suppression and investor outflows. For traders: reduce position sizes in high-risk memecoins, monitor legal developments, watch for delisting announcements and on-chain liquidity movements, and prefer conservative risk management until regulatory clarity returns.