Crypto Chaos: Bannon and Epshteyn in Hot Water Over Let's Go Brandon Coin

In a surprising turn of events, two big names in politics have found themselves in the middle of a crypto storm. Steve Bannon and Boris Epshteyn are now facing a class-action lawsuit over the "Let's Go Brandon" crypto token.

The Allegations

The lawsuit claims that the token, launched in 2021, was marketed as stable and decentralized, but in reality, it was tightly controlled by a few people.

• The lawsuit accuses the defendants of taking advantage of their followers' trust.
• They allegedly encouraged people to invest in the token as a way to support a larger political movement.
• The lawsuit calls this behavior deceitful, especially since it involved a risky, unregistered asset.

The Token's Background

The "Let's Go Brandon" token is not the first of its kind to face such accusations. Similar lawsuits have been filed against other memecoins launched on the Solana-based platform Pump.fun. Despite these similarities, the defendants in this case claimed that their token was different. They said it was a serious financial project with real-world uses and charitable goals.

• The token was originally launched on Binance Smart Chain, not Solana.
• This is notable because Binance is one of the world's largest crypto exchanges.
• The lawsuit also alleges that the defendants had centralized control over the token.
• They could freeze user funds, which reportedly happened, despite promises that users would be "uncancellable."

Securities Violations

The lawsuit also alleges several securities violations. This is particularly interesting because the Trump administration, with which both defendants are affiliated, has recently changed its stance on crypto regulation.

• Bannon served as Trump's campaign CEO and chief strategist.
• Epshteyn has been a senior advisor since 2016.

The lawsuit argues that securities laws exist to protect retail investors from influential insiders who might exploit their trust. It seeks to hold the defendants accountable and deter similar misuse of influence in the future.

Other News

In other news, the SEC recently issued guidance stating that memecoins should not typically be regarded as securities. However, House Democrats have raised concerns about potential corruption and pay-to-play schemes involving crypto during Trump's second term.