Democratic senators Elizabeth Warren and Richard Blumenthal have asked the SEC to investigate whether President Trump's memecoin involves "illegal fraud or unjust enrichment," CNN reported Monday, citing a letter shared first with the outlet.
Trump Memecoin May Be 'Illegal Scam,' Senators Warn SEC: CNN
4 August 2026 - 09:29 UTC
By Stu Clelland
Official Trump (TRUMP) surged after its January 2025 launch before crashing more than 97%. It trades around $1.46 today, valuing it at around $362mn, down from a peak above $75, according to CoinMarketCap. Nearly a million holders have lost a combined $3.8bn, per Nansen research cited by CNN, while Trump reported $636mn in royalties from the coin last year.
The senators called the coin a possible 'soft' rug pull, where support erodes gradually rather than vanishing outright. TRM Labs' Ari Redbord told CNN the token does not fit the classic pattern, though the outcome "is going to look worse with time, not better."
The White House referred CNN to the Trump Organization; the SEC declined to comment to CNN.
