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

BlockBeats News, August 4th. U.S. Democratic Senators Elizabeth Warren and Richard Blumenthal co-signed 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 concerned that President Trump's Meme coin scheme may constitute an illegal scam. Trump launched the Meme coin a few days before taking office in January 2025, with 80% held by entities affiliated with the Trump Group. The coin reached a peak valuation of around $9 billion and is now valued at less than $400 million. According to data from the crypto analysis platform Nansen, nearly 1 million investors have suffered losses on the coin, with a total loss of $3.8 billion by the end of June.

The letter connected the TRUMP Meme coin to a Rug Pull, describing it as a "soft Rug Pull" where the market support gradually fades rather than collapsing all at once.