Warren and Blumenthal Slam Trump's Memecoin as 'Illegal Scam'

US Senator Elizabeth Warren and fellow Democrat Richard Blumenthal have written to the Securities and Exchange Commission (SEC) expressing concerns that President Donald Trump's memecoin may be an 'illegal scam'.

The lawmakers argue that the cryptocurrency could have facilitated unjust enrichment or fraud, and are urging the SEC to investigate further.

According to the letter shared with CNN, Warren and Blumenthal described the possibility of a 'soft rug pull', where insiders profit at the expense of retail investors who bear heavy losses.

The White House referred questions about the memecoin to the Trump Organization, while the SEC declined to comment on the matter.