TRUMP coin faces SEC fraud probe call after 98% crash

Democratic senators Elizabeth Warren and Richard Blumenthal have asked the SEC to investigate whether the TRUMP meme coin facilitated fraud or improper enrichment after its value collapsed 98% from its peak. Summary Warren and Blumenthal urged the SEC to investigate possible fraud involving the TRUMP token. Nearly 989,000 wallets lost a combined $3.81 billion, according to Nansen data. TRUMP trades near $1.47, down about 98% from its all-time high above $73. The request adds pressure to the CLARITY Act’s unresolved ethics negotiations. Senators ask SEC to investigate TRUMP coin Warren and Blumenthal sent a letter to SEC Chair Paul Atkins asking the agency to determine whether the president-linked token involved illegal fraudulent activity or allowed insiders to obtain improper gains. “We are concerned that President Trump’s memecoin scheme may constitute an illegal scam,” the lawmakers wrote, according to CNN reporting cited by multiple outlets. The senators reportedly asked the SEC to examine whether the project operated as a “soft rug pull.” The term describes a situation in which insiders or developers gradually withdraw support or extract value instead of abandoning a project i...