$TRUMP Memecoin Investigated by SEC Over Alleged Illegal Scam Ties

Senator Elizabeth Warren and fellow Democrats have asked the Securities and Exchange Commission (SEC) to investigate President Donald Trump's memecoin, which they claim may be an 'illegal scam' that resulted in nearly $3.8 billion in losses for investors.

The $TRUMP token launched days before the January 2025 inauguration and briefly touched a market capitalization of roughly $9 billion on January 19, 2025. However, it has since declined by over 97% to below a $400 million market capitalization, leaving close to one million people who invested in it with significant losses.

The lawmakers expressed concern that the project's structure concentrated enormous power and profits in the hands of insiders, including Trump Organization affiliates, which controlled approximately 80% of the token supply. President Trump personally reaped nearly $636 million in royalty and licensing fees tied to 'Celebration Coins' in 2025 alone.

Warren and Senator Richard Blumenthal of Connecticut have urged the SEC to probe the $TRUMP coin 'to detect any illegal fraud or unjust enrichment that the coin may have facilitated.' They argued that the agency must be willing to enforce the law even when potential wrongdoers include those with powerful political connections.