Key facts
- X Strategies, the firm behind Trump's social media accounts, is suing co-founder Derek Utley.
- The lawsuit alleges Utley embezzled millions of dollars for personal expenses including gambling, luxury goods, and investments.
- Utley allegedly spent $29 million in company money gambling in 2025, resulting in a $3 million net loss.
- The scheme allegedly unraveled after a new president discovered significant cash discrepancies.
- Utley reportedly admitted to stealing millions, citing low self-esteem, desire for influence, and addiction issues.
X Strategies, the firm responsible for managing President Donald Trump's social media accounts, has filed a lawsuit against its co-founder, Derek Utley, alleging he embezzled millions of dollars from the company. The lawsuit, filed in Florida, claims Utley diverted company funds for personal use, including lavish spending on luxury items, travel, and extensive gambling.
According to the complaint, Utley, who oversaw the company's finances and had exclusive access to its accounts, began siphoning off money in 2021. The suit details allegations of Utley spending company funds on sports cars, designer clothing, jewelry, first-class travel, and significant amounts at casinos. In 2025 alone, the suit claims Utley spent 200 days gambling at the Seminole Hard Rock Hotel and Casino in South Florida, wagering $29 million in company money and winning over $26 million, resulting in a net loss of $3 million.
The alleged scheme reportedly unraveled this year when X Strategies hired a new president who discovered that the company had significantly less cash on hand than its reported revenues indicated. The lawsuit also states that Utley, while at a Las Vegas casino, allegedly called and pleaded for an urgent wire transfer, claiming it was needed for payroll.
When confronted, Utley initially denied the allegations but later admitted to stealing millions, attributing his actions to "low self-esteem, his desire to have more influence and impress others, and his gambling and alcohol addictions," according to the complaint. Utley and Bruesewitz founded X Strategies in 2017.