Co-founder of firm running Trump's social media accounts is sued for gambling $29m of company cash on slots

From the Newshound archive · first published 23 September 2026.

Derek Utley, the former chair and CFO of X Strategies — the firm that runs the Trump War Room and Team Trump accounts on X and manages Trump's TikTok presence — faces accusations of embezzling at least $5 million from the company to sustain a gambling addiction and lavish lifestyle. X Strategies brought the lawsuit last Friday in US District Court in West Palm Beach, Florida, after the alleged theft was uncovered.

In 2025 alone, Utley allegedly cycled $29m of company funds through slot machines at a single casino, with losses of $3m.

Embezzled money was also allegedly spent on luxury sports cars, designer clothes, opulent rented flats and extravagant holidays with an entourage.

Utley told reporters he contests the allegations and intends to fight them in court.