Steve Bannon and the Cryptocurrency Scandal
Steve Bannon, a top adviser to former President Donald Trump, is now facing legal troubles tied to a cryptocurrency venture called “F—— Joe Biden” (FJB). The controversy surrounding this digital currency has sparked a lawsuit from a Missouri investor named Andrew Barr. According to reports, Barr claims he lost nearly $59,000 by investing in the FJB coin and is seeking to file a class-action lawsuit that could involve other prominent figures within the MAGA movement, such as political operative Boris Epshteyn.
The lawsuit alleges that Bannon and other executives of the FJB coin demanded an unusually high 8% fee on transactions, with 5% supposedly intended for charitable donations like veterans’ care. However, these promises have not been fulfilled. The FJB coin, which was marketed as a way to create an “uncancelable” economy under Trump, saw its value plummet under Bannon’s and Epshteyn’s management. The lawsuit also highlights that $2.7 million in funds meant for charity or marketing has gone unaccounted for.
Despite enlisting high-profile supporters like Benny Johnson and Jack Posobiec to promote the coin, the FJB project never became profitable. The lawsuit further points to internal discussions among FJB executives that suggest they were aware of financial mismanagement. One example cited involves a Discord conversation where administrators expressed concerns about a $120,000 payment made to Epshteyn’s friends for subpar services. They referred to it as “drops in the bucket” compared to more significant issues, with one administrator stating that the management of the coin’s finances was “worse than I ever imagined.”
Another executive, Chase Bailey, reportedly commented, “This looks sooooo negligent [sic].”
A Pattern of Involvement in Cryptocurrency Scandals
This is not the first time that Trump and his associates have been linked to cryptocurrency controversies. The Abu Dhabi royal family invested $500 million in the Trump family’s cryptocurrency coin. After Trump became president, the United Arab Emirates gained access to highly sensitive AI technology. Reports indicated that the deal involved paying half upfront, with $187 million going to Trump family entities, while at least $31 million was also allocated to entities affiliated with Trump’s Middle East envoy, Steve Witkoff.
Democratic strategist David Axelrod described this situation as “an earthquake of a scandal,” while Protect Democracy director Ian Bassin noted that “amazingly, this has all but fallen out of the news.”
In addition to Trump, his attorney Todd Blanche faced accusations from the ethics watchdog Campaign Legal Center. Blanche was found to own at least $159,000 in cryptocurrency assets when he ordered an end to investigations into cryptocurrency companies. Despite signing an ethics agreement promising to divest his holdings within 90 days of being confirmed, Blanche delayed the process and instead transferred the assets to his adult children and a grandchild. While this move was technically legal, it raised questions about the spirit of the law.
The Crypto Market’s Decline
Despite the Trump administration’s promises that cryptocurrency would bring immense profits, the market has experienced a sharp decline. Since its October peak, the market has dropped more than 50%, with no signs of recovery in sight.
Nic Carter, founding partner of the crypto investment firm Castle Island Ventures, told Politico that he has never seen people so dispirited about the crypto industry, even during previous downturns. He added, “Psychologically, this feels really hard for people to handle.” Carter later remarked, “The rapture didn’t happen, we’re just stuck here on Earth and it sucks.”
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