Warren Slams Trump's Memecoin as 'Illegal Scam', Seeks SEC Investigation

Democratic senators Elizabeth Warren and Richard Blumenthal have asked the U.S. Securities and Exchange Commission (SEC) to investigate President Donald Trump's official TRUMP memecoin.

The token, which reached a market value of nearly $9 billion shortly after launching, lost over 97% of its value, resulting in billions of dollars in losses for nearly one million wallets.

Warren and Blumenthal claim the token may have worked like a 'soft rug pull,' where insiders slowly sold their holdings while regular investors were left with heavy losses.

The senators point to Trump's crypto earnings, which exceeded $1.4 billion during his first year, and argue that companies linked to Trump and close insiders initially controlled around 80% of the token supply.