X Strategies sues co‑founder over alleged embezzlement

X Strategies, the political consulting firm that runs the Trump War Room and Team Trump accounts on the social‑media platform X, has filed a lawsuit against one of its co‑founders, alleging that he siphoned millions of dollars from the company to finance a lavish lifestyle and a gambling addiction. The suit, filed in a federal court, claims the co‑founder misappropriated client funds and used the firm’s resources for personal expenses, violating fiduciary duties and the firm’s operating agreement.

The lawsuit details that the co‑founder, who helped establish X Strategies in 2020, accessed company accounts and transferred large sums to personal accounts without authorization. X Strategies, which has been a key partner in managing President Donald Trump’s online presence and political messaging, says the alleged embezzlement has disrupted its operations and damaged client trust. The firm seeks restitution of the misappropriated funds and punitive damages for breach of contract and fiduciary obligations.

The case is still pending, with the court yet to set a hearing date. If the allegations are proven, the outcome could affect X Strategies’ standing in the political consulting industry and may prompt a review of internal controls within firms that manage high‑profile political accounts.