Senators Demand SEC Investigate Trump Meme Coin for Billions in Investor Losses

Senators Demand SEC Probe into Trump Meme Coin Amidst Billions in Investor Losses

U.S. Senators Elizabeth Warren and Richard Blumenthal have formally requested that the Securities and Exchange Commission (SEC) investigate a meme coin associated with former President Donald Trump. In a letter addressed to SEC Chair Paul Atkins, the lawmakers expressed concerns that the digital asset may have been used to facilitate fraud or illicit gains at the expense of everyday investors.

The senators cited reports indicating that approximately one million investors collectively lost over $3.8 billion on the token between its launch in January 2025 and the close of June 2026. This period predates Trump’s inauguration by mere days.

During the same timeframe, the former President and his family reportedly amassed around $636 million through trading fees and other revenue streams tied to the token.

Warren and Blumenthal argued that the stark disparity between investor losses and insider profits necessitates a formal SEC inquiry into the project’s structure and marketing practices. They highlighted allegations suggesting that certain traders may have profited from the meme coin’s launch before the general public had an opportunity to participate, raising suspicions of potential insider trading.

The senators contended that these actions, coupled with the subsequent 98% decline in the TRUMP token’s price from its peak, bear the hallmarks of a “soft rug pull.”

The letter references past SEC enforcement actions against comparable cryptocurrency schemes and recent advisories from state regulators, including New York’s, warning about pump-and-dump schemes and rug pulls prevalent in the meme coin sector.

The “Official Trump” token experienced a rapid surge, exceeding $70 within hours of its debut. However, its value has since plummeted, trading below $1.50 as of press time. The token, which once ranked among the top 20 digital assets and was the second-largest meme coin, has fallen out of the top 100 altcoins by market capitalization a year and a half after its launch.

Meanwhile, the team behind the token has been reportedly involved in numerous sales as the price continued to decline.