San Francisco Sues Trump Media Over Truth Social Paid Early-Access Service
"Trump Media created a marketplace that enables insider trading, which Trump directly profits from," City Attorney David Chiu alleges The post San Francisco Sues Trump Media Over Truth Social Paid Early-Access Service appeared first on TheWrap .
San Francisco city officials have filed a lawsuit against Trump Media, the parent company of the social media platform Truth Social, over their Truth API service. The service charges trading firms up to $100,000 a month for early access to President Donald Trump’s posts on the platform, alleging it provides wealthy investors with an unfair competitive edge.
The complaint, filed in San Francisco Superior Court on Monday, targets Truth API, a data service introduced in July by Trump Media. It claims the service offers subscribers a "50 millisecond advantage" over others, directly feeding into algorithmic trading platforms. Over ten customers, primarily high-frequency trading firms, have already signed up for the service by late August, according to the lawsuit.
City Attorney David Chiu stated that Trump Media has created a marketplace that enables insider trading, profiting directly from the information. The lawsuit claims Trump Media violates California's Unfair Competition Law and federal insider-trading laws by aiding and abetting violations. Trump Media has defended Truth API as a financial data product, stating it was created in response to market demand.
The city is seeking a court injunction to stop Trump Media from offering Truth API or similar services and is requesting civil penalties of up to $2,500 for each alleged violation.
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