SEC Sought to Investigate Trump-Linked Memecoin After $3.8 Billion in Losses
US Senators Elizabeth Warren and Richard Blumenthal have asked the SEC to investigate the TRUMP memecoin on Solana, which has seen a significant price drop. The token's value plummeted around 97-98% from its peak, leaving nearly 1 million holders with estimated losses of $3.8 billion.
The senators described the TRUMP token's trajectory as resembling a 'pump-and-dump' scheme and labeled it a potential 'illegal scam.' They argue that insiders profited while retail investors, who bought in due to the token's association with former President Donald Trump, got wiped out.
The SEC under Chair Paul Atkins has been criticized for taking a lighter touch toward crypto. However, this investigation could signal a shift in their approach and raise the stakes for the broader Solana ecosystem, which is home to many memecoins.