$TRUMP Probed by SEC After $3.8B Investor Losses

Two U.S. senators have asked the SEC to investigate $TRUMP, a memecoin that lost nearly 98% of its value and caused $3.81 billion in losses for over one million investors. Senators Elizabeth Warren (D-MA) and Richard Blumenthal (D-CT) made the request on August 4, citing concerns about potential fraud or unjust enrichment involving Trump-affiliated entities.

The senators argued that nearly one million investors lost more than $3.81 billion from the token's debut through June, while Trump-affiliated entities received $636 million in fees. The lawmakers pointed out that early traders secured substantial gains before the token declined sharply, and that 988,905 buyers collectively held combined losses of $3.81 billion.

The request for an SEC investigation comes as Congress debates broader cryptocurrency legislation, with Warren and Blumenthal urging regulators to protect investors in the crypto market. They noted that Trump-affiliated entities control about 80% of the token supply through a three-year vesting structure, which they believe has contributed to the concentration of ownership and losses among retail investors.