Investor Sues Steve Bannon and Boris Epshteyn Over Alleged Fraud in ‘Patriot Pay’ Crypto Scheme
Washington, D.C. – A proposed class-action lawsuit filed in federal court accuses former Trump strategist Steve Bannon and Trump adviser Boris Epshteyn of defrauding retail investors through a politically branded cryptocurrency token originally known as Let’s Go Brandon Coin and later rebranded as Patriot Pay.[1][2]
The complaint, lodged by purchaser Andrew Barr in the U.S. District Court for the District of Columbia, claims the defendants secretly seized control of the project in 2021, using investor transaction fees to finance the takeover rather than their own funds. Despite this insider authority over the token’s smart contract, fee routing, and key wallets, Bannon and Epshteyn allegedly portrayed themselves publicly as mere “supporters” and “advocates.”[1][2]
From Meme Coin to Promised Patriot Alternative
Launched amid conservative backlash against President Joe Biden, the token – symbolized as $FJB – was marketed as a decentralized, censorship-resistant financial tool. Promoters pitched it as a bulwark against “de-banking,” “disappearing,” or political retaliation via traditional banking systems, appealing to MAGA supporters seeking an alternative to mainstream finance.[1][2]
The project promised that 8% transaction fees would partly fund charities like the Wounded Warriors Project, Tunnels to Towers, Semper Fi, and the Patriot Freedom Project. However, Barr’s suit alleges these donations went unaccounted for amid mismanagement and lack of promotion, leading to a steady decline in the token’s value.[1][3]
Abrupt Shutdown and Unfulfilled Promises
In February 2025, the defendants allegedly disabled trading, announced the project’s closure, and promised liquidity distributions to investors that never materialized. This move, the lawsuit contends, reveals their foreknowledge of the scheme’s deficiencies and misrepresentations.[1][2]
Prior frustrations had mounted. An ABC News investigation highlighted internal chaos, with accusations of failed charity commitments and missing funds. In late 2022, amid plummeting value and five months of silence from Bannon and Epshteyn, an $FJB administrator publicly stated on a call that “Boris [Epshteyn] is working on recovering our funds.” A brief announcement of their exit was quickly retracted, followed by social media reaffirmations of support.[3]
The token was acquired from original creators Grant Tragni and co-founders in late 2021. Barr alleges the control was centralized, contradicting decentralization claims, with defendants retaining power to manipulate liquidity and operations.[2]
Legal Allegations and Broader Scrutiny
The suit accuses Bannon, Epshteyn, and related entities of violating federal and D.C. securities laws through the unregistered sale of securities, fraud, misrepresentation, and control person liability. It also invokes D.C.’s Consumer Protection Procedures Act.[1][2]
“Control over the Token’s smart contract, fee routing, and key wallets remained centralized in the hands of insiders, and Defendants and their agents retained the practical ability to control liquidity, dictate the Token’s operational parameters, and—ultimately—disable trading.”[2]
Federal prosecutors in New York have taken interest in the cryptocurrency, sources told ABC News, following reports of mismanagement. This adds to existing legal woes for Bannon, previously convicted in a border wall fraud case, and Epshteyn, a key Trump legal adviser.[3]
Investor Backlash in Crypto’s Wild West
This case underscores risks in politically themed cryptocurrencies, where high-profile endorsements can lure unsophisticated retail investors. The crypto market, rife with meme coins and hype-driven projects, has seen numerous rug pulls – abrupt abandonments leaving holders with worthless tokens.
| Allegation | Details |
|---|---|
| Secret Takeover | Financed by investor fees in 2021[1][2] |
| False Marketing | Claimed decentralization despite centralized control[1][2] |
| Unaccounted Funds | Promised charity donations missing[1][3] |
| Project Shutdown | Trading disabled in Feb. 2025, no refunds[1][2] |
Neither Bannon nor Epshteyn has publicly responded to the lawsuit as of press time. Representatives for both did not immediately reply to requests for comment. The case, Barr v. Bannon et al., is in early stages, with potential to represent thousands of disgruntled token holders if certified as a class action.
Implications for Political Crypto Ventures
As Trump allies, Bannon and Epshteyn’s involvement amplifies scrutiny. Bannon’s War Room podcast and Epshteyn’s advisory role lent credibility, allegedly exploiting followers’ trust. The suit claims they leveraged “prominence and credibility to lure retail investors.”[2]
Crypto regulators have ramped up enforcement post-FTX collapse, targeting unregistered offerings. This lawsuit could signal more actions against celebrity-backed tokens, especially those blending politics and finance.
Barr seeks unspecified damages, rescission of purchases, and disgorgement of ill-gotten gains. The court will decide on class certification and merits.
This developing story highlights the perils of unregulated digital assets. Investors are urged to conduct due diligence beyond endorsements.