$TRUMP Memecoin Under Fire as Senator Warren Demands SEC Investigation
US Senator Elizabeth Warren has formally requested that the Securities and Exchange Commission (SEC) investigate President Donald Trump's $TRUMP memecoin, citing concerns it may be an illegal scam that resulted in nearly $3.8 billion in investor losses.
The $TRUMP token peaked at a market capitalization of around $9 billion on January 19, 2025, but has since collapsed to under $400 million, representing a decline of approximately 97% from its peak.
Warren and fellow Democratic Senator Richard Blumenthal are urging the SEC to detect any potential fraud or unjust enrichment facilitated by the coin. They describe the episode as a possible 'soft rug pull,' where price support is withdrawn gradually rather than in one sudden dump.
The senators' letter notes that nearly one million investors lost money on the Trump memecoin through the end of June, with total losses estimated at $3.8 billion. However, President Trump profited handsomely from the venture, making nearly $636 million in royalty and licensing fees related to 'Celebration Coins' in 2025 alone.