Full Breakdown
Legal Action Against Bannon and Epshteyn Over Cryptocurrency Fraud Allegations
2/14/2026, 11:03:13 AM
Overview of the Lawsuit
On February 13, 2026, a proposed class action lawsuit was filed in the U.S. District Court for the District of Columbia against Steve Bannon, Boris Epshteyn, and others, alleging that they defrauded retail investors through the sale of an unregistered cryptocurrency. The plaintiff, Andrew Barr from Missouri, claims to have lost over $58,000 on investments in a token initially branded as Let’s Go Brandon Coin and later rebranded as Patriot Pay. The lawsuit accuses the defendants of concealing risks and governance issues associated with the token while promoting it as a means of financial independence.
Allegations of Mismanagement and Fraud
The lawsuit alleges that Bannon and Epshteyn took centralized control of the cryptocurrency project in 2021, despite marketing it as decentralized. According to Barr's complaint, the defendants structured a deal that allowed them to acquire control using transaction fees from retail investors rather than their own capital. The complaint further claims that Bannon and Epshteyn misrepresented their roles, presenting themselves as mere supporters while actually holding significant authority over the token's smart contract and financial operations.
The value of the token reportedly declined due to alleged mismanagement and lack of promotion. Promised charitable donations as part of the token's fee structure were not accounted for, leading to further investor dissatisfaction. In February 2025, the defendants disabled trading, announced the project's closure, and failed to distribute promised liquidity to investors.
Legal Implications
The lawsuit cites multiple violations, including the sale of unregistered securities, fraud, and misrepresentation under federal and D.C. securities laws, as well as violations of the D.C. Consumer Protection Procedures Act. Barr seeks to represent a nationwide class of affected investors, aiming for unspecified monetary damages.
Broader Context and Legal Pressure
This lawsuit is part of a growing trend of legal scrutiny surrounding politically branded cryptocurrency projects. A separate class action in Florida related to the LGBCoin token, which is tied to a failed NASCAR sponsorship, is set for jury trial in December 2025. Additionally, federal prosecutors in New York have reportedly begun investigating Bannon and Epshteyn's involvement with the cryptocurrency project.
Official Statements & Responses
As of the latest reports, neither Bannon nor Epshteyn has publicly commented on the allegations. Their legal representatives had not yet entered appearances in the case, leaving the defendants' side of the story unaddressed at this time.
Conflicting Reports & Gaps
While the lawsuit outlines specific allegations of fraud and mismanagement, details regarding the exact nature of the defendants' control over the token and the financial specifics of the alleged mismanagement remain unclear. There are also no immediate responses from the defendants, which could provide further context to the claims made by the plaintiff.
Verbatim Quotes
- “The securities laws exist precisely to prevent influential insiders from exploiting trust, obscuring material facts and shifting risk onto retail investors without transparency or registration,” — Andrew Barr, Plaintiff
