President Donald Trump is facing a lawsuit over the launch of Truth API, which provides traders with advance notice of Truth Social posts, including those containing key policy updates from Trump.
The Intercept Media & Freedom of the Press Foundation (FPF), two non-profits, filed the lawsuit in New York. Along with Trump, the complaint names White House Deputy Chief of Staff Dan Scavino, presidential executive assistant Natalie Harp, the Executive Office of the President, and the White House Office as defendants.
“President Donald Trump is charging $100,000 per month for advance access to his official government announcements on Truth Social, the social media platform he owns,” states the lawsuit. “This scheme is extraordinary, corrupt, and unconstitutional, and Plaintiffs bring this case to stop it.”
Truth API Launched This Month
Truth API launched at the start of this month. It has attracted around 10 customers, each paying between $60,000 and $100,000 per month for access to the feed.
When announcing plans for the project, Trump Media made no secret that it would effectively offer traders insider information from the White House for profit.
“Markets already move on Truth Social posts,” said Kevin McGurn, Interim CEO of Trump Media & Technology Group. “Truth API delivers a direct, licensed, real-time feed of the platform’s most market-moving Truths while advancing our strategy to monetize proprietary assets through a high-margin, recurring revenue stream.”
The feed provides data from the top 10-ranking Truth Social accounts. Trump has the most followers on the platform, with 13 million. He is also Trump Media’s largest shareholder, owning 41% of the company. He placed his shares in a trust run by his son, Donald Trump Jr., upon becoming President in 2024.
He frequently uses Truth Social to announce policy changes, which can have major implications for financial and prediction markets.
Truth Social had announced plans to integrate prediction markets into the platform through a partnership with Crypto.com. However, the company has since scaled back on the deal. It is unclear whether the company is continuing to work on launching a standalone prediction market platform, Truth Predict.
Scheme Is ‘Profoundly Corrupt,’ Says Lawsuit
“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,” states the lawsuit.
It goes on to say the scheme is unconstitutional, violating both the First and Fifth Amendments. “The First Amendment guarantees equal access to the President’s public announcements,” says the complaint.
“There is no legitimate interest, let alone a significant one, in permitting President Trump to profit from selling government information. Similarly, the Fifth Amendment prohibits charging unreasonable sums that cannot be justified to offset the cost of the government benefit, and granting preferential access to crucial government information for arbitrary and irrational reasons, as is the case here,” according to the lawsuit.
The Social Media President
The lawsuit notes that Trump has published between 9,000 and 11,000 posts or reposts on Truth Social since returning to office in 2024.
“Often his posts have no immediate corresponding announcement from the White House. In other words, President Trump’s posts are the only way to get official government news,” it adds.
It also quotes Press Secretary Karoline Leavitt, who confirmed that the Truth Social posts are official government communications.
“The post should be taken as the policy of the Trump Administration. It’s coming straight from the horse’s mouth. When you see it on Truth Social, you know it’s directly from President Trump. That’s the beauty of this President and his transparency in relaying this Administration’s policies to all of you and to the rest of the world,” Leavitt stated.
Independent Press Groups Face Significant Disadvantages
The lawsuit says the Intercept and FPF would be significantly harmed by the denial of official government information, as they frequently use Trump’s posts for reporting. This gives an unfair advantage to competitors who subscribe to the service.
The two non-profit organizations could subscribe to the service, but in doing so would incur financial costs, as well as reputational damage and legal security risks.
They request that the court declare the posting of official government information on Truth Social as unlawful and unconstitutional.
