San Francisco sues over Truth Social ‘insider trading’

Filed 44m ago · Via Courthouse News · The Buffoon Desk

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Kevin MacLeod · incompetech.com · CC BY 4.0

Photo: Agnieszka Kwiecień, Nova · CC BY-SA 4.0 · via Wikimedia Commons

San Francisco City Attorney David Chiu sued Trump Media in state court over its Truth API service, which sells paying subscribers early access to Trump's Truth Social posts and those of nine other top accounts, including the White House and several cabinet officials, ahead of the public. Chiu's suit cites Trump Media's own interim CEO explaining that the 50-millisecond head start feeds directly into algorithmic trading platforms.

Baseline access costs $100,000 a month, discounted to $60,000 with a three-year commitment, and early customers included financial news outlets and high-frequency trading firms. Chiu is seeking to block the service entirely and impose penalties under California's Unfair Competition Law; The Intercept filed a similar suit last month in New York federal court. Trump Media, majority-owned by Trump himself, reported a $238.1 million net loss last quarter.

The full dispatch is available from the source below.

✒ FROM THE EDITORIAL DESK

A fifty-millisecond head start on a man's posting habits, sold by the minute to people with fast computers. That's a tollbooth on a road the public paved, and charging sixty grand a month for it takes a kind of nerve you have to be born with. The company lost $238.1 million last quarter, so you can see why the meter's running.

Source: Read the original at Courthouse News → Scored: Five Card Shuffle · Kevin MacLeod · CC BY 4.0

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