At a Glance
- Warren and Blumenthal want the SEC to investigate Trump’s $TRUMP memecoin for possible fraud
- The coin hit a $9 billion peak on Trump’s inauguration day, now sits under $400 million
- Nearly 1 million holders have lost roughly $3.8 billion combined
- Trump earned close to $636 million in related royalties last year
- SEC says memecoins generally aren’t securities, but fraud claims can still trigger a probe
A gradual crash, not a vanishing act
Two Senate Democrats want answers. In a letter sent Monday to SEC Chair Paul Atkins, Warren and Blumenthal asked regulators to determine whether Trump’s memecoin amounts to an “illegal scam.”
The Numbers Behind the Outrage
Launched just before Trump’s 2025 inauguration, the token soared to a $9 billion valuation almost overnight. Trump Organization affiliates controlled 80% of the supply. Since then, the coin has lost about 97% of its value, leaving nearly a million buyers with combined losses near $3.8 billion, according to Nansen data cited by The New York Times.
Was It a Rug Pull?
Blockchain analytics firm TRM Labs says the coin doesn’t show classic rug-pull signs, since the decline unfolded slowly rather than in a single dump. Warren and Blumenthal call this a possible “soft rug pull” instead; early insiders profited while later buyers absorbed the damage.
The Jurisdiction Question
The SEC ruled in February 2025 that memecoins generally aren’t securities, though it left room to investigate coins designed to dodge that classification. Whether $TRUMP qualifies remains the central question.
What’s Next
The SEC hasn’t commented, and the White House has directed questions to the Trump Organization. Watch for whether Atkins responds publicly to the letter.
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Source: Yahoo Finance
