Warren and Blumenthal Demand SEC Probe into Trump's TRUMP Memecoin
Senators Elizabeth Warren and Richard Blumenthal have called on the US Securities and Exchange Commission (SEC) to investigate President Trump's official TRUMP memecoin. The lawmakers claim nearly one million wallets lost billions of dollars as the token crashed, raising concerns about insider profits and investor protection.
The senators argue that the token may have worked like a 'soft rug pull,' where insiders slowly sold their holdings while regular investors were left with heavy losses. According to the lawmakers, the token reached a market value of nearly $9 billion shortly after launching before losing more than 97% of its value.
The TRUMP memecoin is accused of being an 'illegal scam' by Senator Warren, who points out that companies linked to Trump and close insiders initially controlled around 80% of the token supply. Instead of selling everything at once, they allegedly reduced their holdings over time, putting continuous pressure on the token price.