Warren and Blumenthal Demand SEC Probe of Trump Memecoin
Senate Democrats Elizabeth Warren and Richard Blumenthal have called on the SEC to investigate President Trump's memecoin, which they claim may be an 'illegal scam'. The coin briefly reached a peak of around $9 billion in January 2025 but has since crashed, leaving nearly a million investors facing losses. Almost $3.8 billion in losses have been racked up through June this year.
Warren and Blumenthal wrote to SEC Chair Paul Atkins that they are concerned about the concentration of the coin's supply among Trump Organization affiliates and the potential for 'unjust enrichment'. They also pointed out that the coin was launched just days before Trump took office in 2025, which they see as unusual.
The lawmakers argue that the SEC must investigate whether a fraudulent scheme is underway and prevent further extraction of value from investors who put their faith in the coin. In response to the allegations, Trump's team has referred questions to the Trump Organization, while the SEC declined to comment.