U.S. President Donald Trump has filed a $15 billion defamation lawsuit against The New York Times, alleging that the newspaper’s reporting has severely damaged his reputation and the value of his associated cryptocurrency projects, including the TRUMP token.
Launched ahead of his inauguration, the TRUMP token reached a peak market capitalization of $11.7 billion but has since plummeted to $1.7 billion. The lawsuit, filed in a Florida federal court, marks the latest in a series of legal battles between Trump and media outlets, this time centering on claims that the paper’s coverage has undermined his crypto ventures.
The Basis of the Lawsuit
The suit targets articles and a book by New York Times reporters, published in the lead-up to the 2024 presidential election. These materials suggest that Trump personally benefited from ties to cryptocurrency projects and foreign investors, allegations his legal team calls “malicious distortions.”
Trump’s representatives argue that The New York Times, alongside publisher Penguin Random House, deliberately crafted a narrative to harm his image as a businessman and political figure.
The complaint specifically cites a Times editorial endorsing Kamala Harris and investigative pieces questioning the legitimacy of Trump’s financial success, which he claims were designed to sabotage his campaign and prejudice legal proceedings against him.
A New Crypto Controversy
The lawsuit gained fresh momentum with a September 15 article from The New York Times, which alleged a potential conflict of interest between Trump’s cryptocurrency business and U.S. foreign policy. The report claimed that MGX, a UAE-based fund, invested $2 billion in Binance via the USD1 stablecoin, issued by a crypto project linked to Trump’s sons.
Just two weeks later, the White House approved the export of scarce semiconductor chips to the UAE, raising questions about possible quid pro quo arrangements. Trump’s legal team has dismissed these claims as baseless, asserting that the timing is coincidental and that the administration’s decisions are driven by national interest, not personal gain.
Eric Trump’s Defense
In a CNBC interview, Eric Trump defended his father, calling him “the first person not to profit from the presidency.”
He argued that the Trump family turned to cryptocurrencies after banks, under the Joe Biden administration, began denying them services - a narrative framing their crypto involvement as a response to exclusion rather than opportunism.
Eric also suggested that the media’s scrutiny is politically motivated, aimed at discrediting the Trump brand and its innovative ventures, including the TRUMP token.
Skepticism and Broader Context
While Trump’s lawsuit portrays The New York Times as a partisan actor, critics might question the feasibility of linking media coverage directly to the TRUMP token’s decline. The crypto market is notoriously volatile, influenced by factors beyond news reports, such as regulatory shifts and investor sentiment.
The alleged UAE investment and chip export approval, if true, could point to legitimate concerns about transparency, yet the lack of concrete evidence in the Times’ reporting leaves room for doubt about causation. The involvement of Binance and a stablecoin like USD1 also raises questions about whether Trump’s sons’ project adhered to strict compliance standards, a detail the lawsuit conveniently sidesteps.
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Implications for Crypto and Politics
The TRUMP token, marketed as a symbol of Trump’s “America First” ethos, attracted significant attention but has struggled to maintain its value post-inauguration.
The lawsuit’s $15 billion demand - far exceeding the token’s current market cap—appears more symbolic than practical, possibly intended to pressure the newspaper or rally his base. Meanwhile, the UAE investment allegations could fuel debates about foreign influence in U.S. policy, especially if further evidence emerges.
This legal move highlights the intersection of politics, media, and cryptocurrency, with Trump leveraging his platform to challenge narratives that threaten his financial and political empire. Whether the lawsuit holds legal weight remains uncertain, but it underscores the high stakes of his public image in an era where meme coins and international deals intertwine with governance. As the case unfolds, it will likely draw intense scrutiny from both supporters and detractors, shaping the narrative around Trump’s crypto legacy.
