Donald Trump sued over Truth Social paid access for market-moving posts

Donald Trump sued over Truth Social paid access for market-moving posts

President Donald Trump is facing a federal lawsuit over a new service that sells early access to his social media posts, which plaintiffs describe as extraordinary, corrupt and unconstitutional.

The lawsuit was filed Wednesday, in the U.S. District Court for the Southern District of New York by The Intercept and the Freedom of the Press Foundation. The suit targets the Truth API, a product launched last month by Trump Media & Technology Group, the company that owns Truth Social.

Under the Truth API, Wall Street companies and other entities can pay between $60,000 and $100,000 per month for preferred access to the president's posts. The $60,000 rate is available to those who commit to three years. The service provides 24/7 access and archived posts dating back to 2022, including content that was previously altered or deleted.

The plaintiffs argue the service violates the First Amendment by denying equal public access to the president's statements and the Fifth Amendment by granting preferential access for unreasonable sums. The lawsuit asks the court to declare Truth API unlawful and block the president from posting official government information exclusively on Truth Social.

The core of the dispute centers on the market-moving nature of Trump's posts. He frequently uses the platform to announce developments regarding trade tariffs and the war in Iran, events that can cause market values to soar or tumble. In the high-frequency trading world, a lead of a few milliseconds can result in millions of dollars in profit.

"This scheme is profoundly corrupt. The President stands to gain financially by giving ‘market-moving’ government information to those who are willing and able to pay his personal company,"

Plaintiffs, via court filing

Brendan Ballou of the Public Integrity Project, representing the media groups, stated in an interview that the president is using his office to enrich himself in a way that is unprecedented in American history. He described Trump as the Picasso of corruption for creating schemes that would not occur to others.

The lawsuit also names the Executive Office of the President and the White House Office as defendants, alongside White House deputy chief of staff Dan Scavino and executive assistant Natalie Harp, both of whom have access to the president's account.

Trump Media & Technology Group has defended the move, stating that monetizing platform data is common among tech companies. A company spokesperson added that the president's posts are spread across various news outlets and the internet, and that the platform was founded as an uncancellable haven for free speech.

Interim CEO Kevin McGurn said the company intends to create a lot of friction for those folks that aren’t coming to us directly.

The push for new revenue comes as Trump Media faces significant financial instability. On Monday, the company reported a $238 million loss for the second quarter, a ten-fold jump in losses linked primarily to the decline in value of cryptocurrency assets. During a conference call with investors, executives called the focus on Truth Social a disciplined choice.

Trump Media disclosed Monday that it has more than 10 subscribers to the Truth API, including financial news outlets and high-frequency trading firms, though it did not name the clients.

The company's recent business moves have drawn scrutiny from analysts. While a merger with a nuclear fusion company remains pending, executives announced they are abandoning "Truth Predict," a proposed entry into the prediction market sector. Instead, Truth Social will promote the prediction market services of Crypto.com to its users.

The lawsuit arrives amid reports of massive personal wealth accumulation for the president. Financial disclosures from June show he took in at least $2 billion last year. Forbes estimates his net worth rose from $2.3 billion to $6.5 billion since 2024, fueled by property deals, stock trades, cryptocurrency ventures, and lawsuit payouts.

Legal experts, Wall Street executives, and Congressional Democrats have raised concerns that the service violates insider trading laws. Several Democratic lawmakers have called for the Securities and Exchange Commission to investigate the service.

Ballou added that the service disadvantages journalists who cannot afford the fees, noting that the issue involves both the speed and accuracy of information.