Two former advisors to US President Donald Trump are facing legal action from cryptocurrency $BTC investors following the collapse of two politically themed digital asset projects.

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 $ETH 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.