BlockBeats report: On August 4, U.S. Democratic Senator Elizabeth Warren and Senator Richard Blumenthal of Connecticut jointly sent a letter to the SEC Chair on Monday, calling for an investigation into Trump’s meme coin, TRUMP, “to determine whether the coin facilitated any illegal fraud or improper gains.” In the letter, Warren and Blumenthal explicitly stated: “We are concerned that President Trump’s meme coin initiative may constitute an illegal scam.” Trump launched the meme coin just days before his January 2025 inauguration, with 80% held by entities affiliated with the Trump Organization; its peak valuation reached approximately $9 billion and has since fallen below $400 million. According to data from the crypto analytics platform Nansen, nearly one million investors have incurred losses on this coin, with total losses reaching $3.8 billion as of the end of June.
The letter links the meme coin TRUMP to a rug pull, describing it as a "soft rug pull," where the market cap support gradually fades rather than collapsing abruptly.