# Trump Social Media Firm Sues Co-Founder Over Alleged $5M Diversion

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/23500
Published: 2026-09-24T01:56:53.000Z
Updated: 2026-09-24T01:56:53.000Z

X Strategies has sued former co-founder Derek Utley in federal court, alleging he diverted at least $5 million from the Florida social media firm for personal expenses and gambling.

The 34-page complaint was filed Sept. 18 in U.S. District Court in West Palm Beach. X Strategies runs President Donald Trump’s Trump War Room and Team Trump social media accounts.

The company alleges Utley had exclusive control of its bank accounts after co-founding the firm with Trump adviser Alex Bruesewitz in 2017. It says he began using company funds in 2021 for sports cars, designer clothing, jewelry and luxury condos.

X Strategies also alleges Utley spent 200 days at the Seminole Hard Rock Hotel & Casino in Hollywood, Florida, during 2025. The company claims he wagered $29 million in corporate funds on slot machines, won back more than $26 million and kept those winnings, leaving the firm with a $3 million loss.

The complaint further alleges that Utley withdrew cash from casino ATMs and told banks the money was for client entertainment.

The alleged shortfall emerged after X Strategies hired Michael Seifert, the former CEO of PublicSq., as president. Utley left the company in April and surrendered his 50% ownership stake.

The lawsuit asserts civil RICO, theft, fraud and breach-of-fiduciary-duty claims. It seeks damages that could be tripled under the racketeering claim.

Utley disputes the allegations and plans to address them through the legal process. Weisheimer denied wrongdoing and said she had no involvement in the dispute.