Elizabeth Warren demands SEC investigate if Trump’s memecoin is an ‘illegal scam’
The senators cited $3.8 billion in losses for nearly a million investors and said Trump made $636 million from the token.
- On Monday, Senate Democrats Elizabeth Warren and Richard Blumenthal demanded that SEC Chair Paul Atkins investigate President Trump's memecoin, citing concerns it may facilitate "illegal fraud or unjust enrichment" for the Trump Organization.
- The Trump coin peaked at about $9 billion in January 2025 before collapsing in an epic selloff. Nearly 1 million investors lost $3.8 billion through June, with the asset now worth less than $400 million, according to Nansen.
- Lawmakers suggested the scheme could be a "soft rug pull," where support is withdrawn gradually. With 80% of supply held by insiders, Warren and Blumenthal argue the project requires scrutiny to protect retail buyers.
- Trump defended his crypto profits in a CNBC interview last month, stating he followed the law and authorized his son Eric to manage his finances. The White House referred further questions to the Trump Organization.
- The SEC evaluates memecoins case-by-case, and while Ari Redbord of TRM Labs previously noted the project lacked traditional "rug pull" hallmarks, lawmakers argue the SEC must enforce laws regardless of political connections.
38 Articles
38 Articles
Warren and Blumenthal Ask SEC to Investigate Trump's Memecoin as Clarity Act Stalls Over Ethics
Senators Elizabeth Warren and Richard Blumenthal asked the Securities and Exchange Commission on Monday to investigate $TRUMP, the memecoin President Donald Trump promoted three days before his inauguration. In a letter to SEC Chair Paul Atkins, the two Democrats said the token’s collapse warrants scrutiny for possible fraud and unjust enrichment. The senators built their case on the gap between what buyers lost and what the president earned. Ne…
SENATE DEMANDS: Warren and Blumenthal Call on SEC to Investigate Trump Memecoin, CNN Reports
Democratic Sens. Elizabeth Warren and Richard Blumenthal are demanding that the SEC investigate President Trump’s memecoin, alleging that it may have facilitated fraud or improper enrichment, CNN reported. The token has fallen approximately 97% from its peak, and research cited by CNN found that nearly one million investors lost a combined $3.8 billion through June. […]
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