Senators Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.) have formally requested the Securities and Exchange Commission (SEC) to investigate President Donald Trump’s meme coin, citing fears it could be a "rug pull," a type of cryptocurrency fraud where investors are left with worthless tokens after project shutdown.

The coin was launched just prior to Trump’s inauguration and reportedly peaked at a market value of about $9 billion on January 19, 2025. According to The New York Times, Trump earned approximately $636 million from the coin. However, the coin’s value has since plummeted by 97 percent to less than $400 million, as noted in a report from Senator Blumenthal.

Warren and Blumenthal emphasized in their letter to the SEC that the agency is responsible for ensuring integrity, stability, and fairness in financial markets and must investigate the matter to protect investors, regardless of the individuals involved. They wrote, "Given sharp depreciation in the coin’s value—despite the hype coming directly from the President’s own public statements—the SEC must investigate whether a fraudulent scheme may be underway, and prevent further extraction of enormous value from the hundreds of thousands of investors who put their faith in Trump’s coin."

This call for investigation follows Trump’s financial disclosures revealing he earned over $500 million from his cryptocurrency venture World Liberty Financial, co-founded with his sons. Trump defended his involvement in cryptocurrency in July at Joint Base Andrews, Maryland, stating, "I don’t get involved in my personal [crypto ventures]."

A "rug pull" in cryptocurrency refers to a scenario where, after raising funds through token sales, the project operators shut down or abscond with the raised assets, leaving investors with significant losses. The senators allege that the trajectory of the $TRUMP coin fits this pattern.

Sources