Nikolas Sargeant
Senator Elizabeth Warren has accused President Donald Trump of unethical behavior through his recent memecoin ventures, calling for a comprehensive federal investigation. Last week, Trump launched the $TRUMP memecoin on Truth Social, quickly followed by Melania Trump's $MELANIA coin, distributed by MKT World.
Warren and Rep. Jake Auchincloss drafted a letter to multiple federal agencies, including the Office of Government Ethics, SEC, Treasury, and CFTC. They alleged the memecoins create a direct pathway for personal enrichment and potential foreign influence.
Crypto Whales Dominate Trump's Token Market
Chainalysis revealed a startling concentration of ownership: 40 crypto whales control 94% of the tokens, each holding $10 million or more. Trump's companies potentially control 80% of $TRUMP, with the ability to release 24 million tokens monthly—translating to an estimated $1.73 billion in potential monthly income.
The lawmakers raised critical concerns about the tokens' structure. They argued that anyone, including leaders from hostile nations, could secretly purchase these coins, enabling unregulated foreign influence. Moreover, they warned that Trump's supporters bear significant financial risks, with the potential for massive value depreciation once the Trump family decides to sell.
Potential Risks and Ethical Violations
Warren and Auchincloss highlighted multiple red flags:
- Potential conflicts of interest through substantial token ownership
- Risk of untraceable foreign financial influence
- Possibility of market manipulation
- Potential harm to Trump's own supporter base
The investigation request demands answers by February 4th, signaling a serious challenge to the memecoins' legitimacy and the ethical boundaries of presidential financial activities.
