In a significant legal development, Steve Bannon and Boris Epshteyn have been named as defendants in a class-action lawsuit concerning Let’s Go Brandon Coin, a cryptocurrency launched in 2021. The lawsuit, detailed in a court document obtained by Bloomberg Law, accuses the defendants of promoting the token as stable and decentralized, while allegedly maintaining substantial centralized control over its management.
The claims outline that Bannon and Epshteyn specifically targeted a politically aligned and deeply loyal audience, leveraging their trust to encourage investments in the token. The class-action complaint highlights that the defendants exploited this trust, presenting the token as a vehicle for financial independence and community membership. The filing asserts that the defendants misrepresented Let’s Go Brandon Coin, marketing it as a legitimate financial project with real-world utility and resilience against inflation and financial censorship, in stark contrast to its actual status as a speculative memecoin.
Despite being launched before the recent memecoin surge associated with the Solana-based platform Pump.fun, the creators of Let’s Go Brandon Coin face allegations similar to those made against various other crypto projects and their promoters. Notably, the lawsuit contends that the token was misrepresented and suggests violations of securities laws tied to its promotion, which is particularly noteworthy given the regulatory environment surrounding cryptocurrencies.
Let’s Go Brandon Coin was initially launched on Binance Smart Chain, the blockchain platform affiliated with the prominent cryptocurrency exchange, Binance. The court document alleges that the defendants held centralized control over the token’s smart contract, enabling them to freeze users’ funds—an action that reportedly took place despite claims that users would have uncancellable access.
The lawsuit highlights the implications of their actions, claiming that securities laws are designed to safeguard investors from influential insiders who might exploit trust and obscure critical information. It demands accountability from Bannon and Epshteyn for their alleged misconduct, aiming to restore the losses suffered by investors and discourage the misuse of public influence in the future.
The backdrop of this legal battle is further complicated by the regulatory tensions that have arisen since the Trump administration’s approach to cryptocurrencies shifted under the administration’s influence. Bannon, who has deep ties to Trump’s political endeavors, served as chief executive of Trump’s 2016 presidential campaign and retained influence into the subsequent administration. Epshteyn, also a significant figure in Trump’s inner circle, has been advising the former president since the initial campaign.
In recent months, the Securities and Exchange Commission (SEC) has issued guidance regarding memecoins, suggesting they typically should not be classified as securities for regulatory purposes. This has prompted discussions among House Democrats who have raised concerns over the potential for corruption and exploitation in the crypto space during Trump’s presidency, particularly in light of recent scandals involving other crypto figures.
Adding another layer to the ongoing saga, both Donald Trump and Melania Trump have launched their own memecoins, which have faced severe declines, dropping over 95% from their peaks. Amidst these unfolding events, the cryptocurrency industry is grappling with the need for clearer regulatory guidelines. Hopes for legislative progress have been tested, particularly following the withdrawal of support from Coinbase for a draft version of the CLARITY Act, casting uncertainty over the future of crypto regulation. Current predictions suggest a 52% chance of the legislation being enacted in the near term.
