
The San Francisco city government filed a lawsuit against the Trump Media and Technology Group, accusing it of selling Wall Street traders priority access to Trump’s Truth Social platform articles through the paid service Truth API, thus promoting insider trading and harming the interests of ordinary investors.
AI-generated summary
The Truth Social platform under the Trump Media and Technology Group is an alternative platform created after Trump was banned by mainstream social media. Truth API is its paid value-added service that allows users to get early access to posts from Trump and other influencers.
The city government of San Francisco has filed a lawsuit against President Trump's media company, which owns the "Truth Social" platform. The city accused the company of facilitating insider trading by selling Wall Street traders priority access to Trump's articles on Real Communities.
According to the "AFP" report, San Francisco city lawyer David Chiu filed a lawsuit against the Trump Media and Technology Group (TMTG) in the San Francisco court on the 21st, in which Trump holds 41% of the shares. The lawsuit mainly targets the "Truth API" paid information streaming service launched this summer. Service users pay a monthly fee to see articles published by Trump, Vice President JD Vance and other influential figures earlier than the general public.
This time advantage allows algorithmic trading firms to analyze announcements that may affect market trends earlier, thereby gaining a trading advantage. For example, since the conflict between the United States and Iran broke out, some of Trump's articles on "Real Community" have triggered a violent reaction in oil prices.
"This is corruption, plain and simple," Chiu said in a statement. "The people of California should not be forced to compete with wealthy trading firms who pay to buy early access to market-sensitive information." The San Francisco city government filed a lawsuit citing California's Unfair Competition Law, arguing that residents who invest their money in retirement funds are therefore at a disadvantage.
Trump Media Company spokesperson Shannon Devine responded, "The people of California should leave future lawsuits to AI chatbots. These chatbots at least understand the basic difference between public and non-public information, unlike the left-wing activists who filed this lawsuit and pretended to be lawyers."
AI outlook — possibilities, not facts
The city of San Francisco will apply for a preliminary injunction in the coming weeks to prevent further operations of Truth API.
Likely · Within weeks
Trump Media Company will argue that the Truth API only provides early access to publicly available information and does not constitute insider trading.
Very likely · Within weeks

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