U.S. Senator Letter to SEC Requests Investigation into Meme Coin TRUMP for Alleged “Illegal Scheme,” Accusing It of a Soft Rug Pull

August 4th - U.S. Democratic Senators Elizabeth Warren and Richard Blumenthal jointly sent a letter to the SEC chairman on Monday, requesting an investigation into the Trump Meme coin TRUMP to "determine whether the coin has facilitated any illegal fraud or improper profit." Warren and Blumenthal expressed their concerns in the letter: We are worried that President Trump's Meme coin scheme may constitute an illegal scam. Trump launched the Meme coin just days before taking office in January 2025, with 80% held by entities affiliated with the Trump Organization. The coin's peak valuation was around $9 billion, but it is now worth less than $400 million. According to data from the crypto analytics platform Nansen, nearly one million investors have suffered losses on this coin, with a total loss of $3.8 billion as of the end of June.

The letter linked the Trump Meme coin to a Rug Pull, referring to it as a "soft Rug Pull" where the market support gradually diminishes rather than collapsing all at once.