Investigation into Trump’s meme coin: accusations of fraud and losses in the billions
Democratic Senators Warren and Blumenthal sent an official letter to the Chair of the U.S. Securities and Exchange Commission, Paul Atkins, urging an investigation into whether Trump’s meme coin ($TRUMP ) involves fraud or illicit enrichment. According to reports based on network analyses by Nansen, around one million wallets were harmed by cumulative losses of about $3.8 billion after the coin’s value collapsed by between 95% and 98% from its prior peak near $70–$75, after entities linked to the Trump organization initially controlled roughly 80% of the supply. The senators argue that this pattern resembles a “soft rug pull,” with insiders selling gradually while individual buyers bear the losses, coinciding with Washington’s discussion of the CLARITY Act, which includes ethical rules regarding officials launching cryptocurrency projects.
Democratic Senators Warren and Blumenthal sent an official letter to the Chair of the U.S. Securities and Exchange Commission, Paul Atkins, urging an investigation into whether Trump’s meme coin ($TRUMP ) involves fraud or illicit enrichment. According to reports based on network analyses by Nansen, around one million wallets were harmed by cumulative losses of about $3.8 billion after the coin’s value collapsed by between 95% and 98% from its prior peak near $70–$75, after entities linked to the Trump organization initially controlled roughly 80% of the supply. The senators argue that this pattern resembles a “soft rug pull,” with insiders selling gradually while individual buyers bear the losses, coinciding with Washington’s discussion of the CLARITY Act, which includes ethical rules regarding officials launching cryptocurrency projects.