NEW YORK, Jan. 20, 2026 — Former President Donald J. Trump is confronting ongoing fallout from a civil fraud judgment in New York, with a penalty exceeding $450 million plus interest, but viral claims circulating on social media that federal marshals are seizing Trump Tower are inaccurate, according to court records and statements from state officials.

The case, brought by New York Attorney General Letitia James in 2022, accuses Mr. Trump, the Trump Organization and two of his adult children — Donald Trump Jr. and Eric Trump — of systematically inflating asset values on financial statements to obtain favorable loan and insurance terms. In a pretrial ruling in September 2023, Justice Arthur F. Engoron of the New York State Supreme Court found the defendants liable for fraud, citing examples such as overstating the size of Mr. Trump’s Trump Tower triplex penthouse by nearly three times — claiming 30,000 square feet when it measured about 11,000.

A nonjury trial followed, concluding in February 2024 with Justice Engoron ordering the defendants to pay more than $354 million in penalties, a figure that has grown to over $450 million with interest. The judge also imposed a three-year ban on Mr. Trump serving as an officer of any New York company and two-year restrictions on his sons. An independent monitor continues to oversee the Trump Organization’s finances.

Mr. Trump appealed the ruling. In March 2025, a midlevel appeals court reduced the bond he was required to post from $454 million to $175 million while the appeal proceeds, allowing him to avoid immediate asset forfeiture. The court did not overturn the fraud finding, and the full appeal remains pending before the New York Appellate Division, with arguments potentially extending into late 2026 or beyond.

Attorney General James has stated that her office will pursue enforcement if the judgment is upheld and unpaid, which could involve seizing assets such as bank accounts, properties or other holdings. However, no such action is imminent. “Asset seizure requires the exhaustion of all appeals and failure to satisfy the judgment,” a spokeswoman for Ms. James said in a statement. Court filings confirm that no order has been issued for marshals to take control of Trump Tower or any other property.

Social media videos and posts in recent days, some viewed millions of times, have falsely claimed that federal marshals were at Trump Tower executing a takeover. Fact-checkers, including those from Snopes and PolitiFact, have debunked these as misleading or fabricated, often splicing old footage with unsubstantiated narration. The New York City Sheriff’s Office and the U.S. Marshals Service both confirmed no involvement in any seizure related to the case.

Mr. Trump has repeatedly denounced the lawsuit as a “witch hunt” orchestrated by Ms. James, a Democrat, and has vowed to fight it “all the way to the Supreme Court if necessary.” On Truth Social, he has framed the case as political persecution, rallying supporters to contribute to legal defense funds. His legal team argues that no banks were harmed — as loans were repaid — and that valuation discrepancies are common in real estate.

Legal experts note that while the penalty is substantial, Mr. Trump’s net worth — estimated by Forbes at around $7.5 billion as of January 2026 — provides avenues to satisfy the judgment through bonds, asset sales or other means if the appeal fails. The case does not carry criminal penalties or the threat of jail time, distinguishing it from separate prosecutions Mr. Trump has faced.

The fraud ruling has already had practical effects: Several banks and insurers have distanced themselves from the Trump Organization, and the company dissolved certain entities to comply with court orders. An independent compliance director continues to review transactions.

Ms. James’s office has emphasized that the case upholds accountability in business practices. “No one is above the law,” she said in a statement last year, a phrase echoed in her recent updates.

As the appeal process continues, the case remains a focal point in Mr. Trump’s public narrative during his second term, often cited in speeches and fund-raising appeals. Developments are closely watched, but for now, Trump Tower — the Midtown Manhattan skyscraper that has long symbolized Mr. Trump’s brand — remains under his control.

This article is based on court filings, statements from involved parties and verified reporting. The appeals process is ongoing, and further reductions or affirmations of the judgment are possible.