Warren and Blumenthal Call for Investigation into Trump's Meme Coin
Senators Elizabeth Warren and Richard Blumenthal are calling for an investigation into President Trump's meme coin, citing concerns it could be a 'rug pull'.
A rug pull occurs when investors shut down a project or disappear with the raised funds. The senators claim that the $TRUMP coin follows this pattern, having reached a peak of about $9 billion on January 19, 2025, and now being worth less than $400 million.
The coin's value has dropped by 97%, according to a report from Blumenthal. Trump made $636 million from the coin at its peak, according to The New York Times. In his financial disclosures, Trump revealed that he earned more than $500 million from his cryptocurrency venture World Liberty Financial.
The SEC previously pursued a prosecution against Eric Zhu for a fraudulent 'rug pull' scheme and revised its guidance on meme coins, clarifying they are not securities under federal law. However, the senators argue this case should be investigated due to the significant decline in value despite Trump's public statements promoting it.