ChainCatcher report: According to CNN, U.S. Democratic Senators Elizabeth Warren and Richard Blumenthal have requested the U.S. Securities and Exchange Commission (SEC) to investigate Trump’s Meme coin, TRUMP, to determine whether the project involves fraud or improper gains. In a letter to SEC Chair Paul Atkins, they stated that the Trump Meme coin project “may constitute an illegal scam” and urged the regulator to investigate whether the token engages in “illegal fraudulent activity or facilitates improper gains.” It is reported that Trump launched his personal Meme coin, TRUMP, just days before his 2025 inauguration. After its launch, the token’s price surged sharply, reaching a market capitalization peak of approximately $9 billion on January 19, 2025, before plunging significantly. The token’s current market cap has fallen to under $400 million, a decline of more than 95% from its peak. According to data from the crypto analytics platform CoinMarketCap, investors who bought at the high are now facing losses of approximately 97%. Blockchain analysis firm Nansen previously cited data indicating that nearly one million investors incurred losses due to this Meme coin, with total losses amounting to around $3.8 billion as of the end of June. Approximately 80% of the TRUMP token’s supply is held by entities associated with Trump’s organization. Trump has previously stated that he complies with the law and delegates management of his personal financial affairs to family members. Warren and Blumenthal emphasized in their letter whether the project resembles a “rug pull” common in the crypto industry. They argue that even if it does not involve an abrupt withdrawal of liquidity, it may still constitute a “soft rug pull” through gradual withdrawal of market support, resulting in investor losses. The SEC has not yet commented on the matter.
U.S. Senators Demand SEC Investigation into Trump’s Meme Coin TRUMP for Fraud Risks
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Summary
U.S. Senators Elizabeth Warren and Richard Blumenthal have urged the SEC to investigate Trump’s meme coin, TRUMP, for potential fraud. The token, launched ahead of Trump’s 2025 inauguration, reached a $9 billion market cap before crashing to under $400 million. Altcoins that attract attention often face scrutiny, and TRUMP is no exception. Over 1 million investors reportedly lost $3.8 billion, with 80% of the tokens held by entities linked to Trump. The crypto market’s Fear & Greed Index remains volatile as regulators consider their response. The SEC has not yet responded.
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