$3.8 Billion in Investor Losses Prompt SEC Investigation into Trump Memecoin

US Senators Elizabeth Warren and Richard Blumenthal have written to the Securities and Exchange Commission (SEC), requesting an investigation into the $TRUMP memecoin. The token, which debuted on January 17, 2025, three days before President Trump's inauguration, has been accused of following a 'rug pull' pattern.

The senators cited reports that nearly one million investors collectively lost more than $3.8 billion after purchasing the token. They also pointed out that President Trump earned about $636 million from the project while its market value fell sharply.

Warren and Blumenthal argued that the SEC should determine whether any securities laws or fraud statutes were violated in connection with the project. They said the agency has a duty to protect investors and maintain fair financial markets, regardless of who is involved.