Trump Meme Coin Value Plunges 95%, Senators Urge SEC Fraud Probe

Senators Warren and Blumenthal petition SEC to investigate TRUMP token for fraud, citing 95% price crash and $3.8B in investor losses linked to potential soft pull.

Woofun AI reports that U.S. Senators Elizabeth Warren and Richard Blumenthal have formally requested the Securities and Exchange Commission to investigate the TRUMP meme coin for potential fraud or improper profit-making. The senators argue the project may constitute an illegal scam or a "soft pull," where gradual withdrawal of support causes investor losses, distinct from traditional rug pulls.

The TRUMP token, launched days before the 2025 inauguration, peaked at a $9 billion market cap on January 19, 2025, before dropping over 95% to below $400 million. Nansen data indicates nearly 1 million investors have lost approximately $3.8 billion by late June, with about 80% of the supply held by Trump Organization entities. The SEC has not yet commented.