The public citizen only threw a legal wrench in Trump’s Mem Coin Empire – called it a disturbed gift and a national security risk. what’s Cooking?
Trump’s meme coin gambling under fire
Crypto is having a new controversy in the world, and is none other than US President Donald Trump at the center.
On 17 January, a few days before his inauguration as the 47th President of the United States, Trump’s official Meme coins, the official Trump (Trump) started the public.
The frenzy, connecting his wife, Melania Trump, also introduced his own meme coin -official Memm (Memmes) – which quickly attracted billions to liquidity.
Within 48 hours, Trump Token hit the price, marking a significant decline, reaching a market cap of $ 15 billion before crashed by about $ 3.7 billion by 6 February.
On 5 February, public citizens Filed A formal complaint with the office of the Department of Justice and the Office of Government Ethics, alleging that by promoting his own meme coin, Trump may have violated federal laws, who prevent sitting presidents from pleading for personal gifts .
According to public citizens, after taking oath as President on January 20 and 21 – Trump took both X and Truth social media on social media to re -introduce messages promoting his meme tokens.
The group argues that because the coin is marketed as a “meme”, in which there is no promised value or return, buyers are essentially giving just trump money, and that is becoming “rich”. If so, it is not an investment – it is a gift, and under the law, it is a problem.
But there is a great concern that is spread beyond legal technology.
Emolumens of the Constitution prevent American presidents from accepting funds or gifts from foreign governments. With the decentralized and often anonymous nature of the crypto, there is no way to verify the token of Trump.
This, the public citizen warns, creates a national security risk. If foreign institutions are quietly doing a funnel for Trump under the guise of purchase of meme coin, then there is no system to detect it – stop it alone.
A billion-dollar tokens and a liquor making political defeat
record show The CIC Digital LLC, which is a company connected to the Trump organization and controlled by a revocable trust, is 80% of the total supply of 999.99 million trump tokens.
Since Donald Trump is the only beneficiary of this trust, any financial benefit from tokens – whether intentionally or not – finally flows directly to him.
Crypto.news had earlier reported that on the day of Trump’s inauguration on January 20, Forbes had estimated his total assets of $ 6.7 billion.
On the same day, the total value of his stake in Trump tokens was estimated to be $ 42.6 billion based on -800 million unlocked token-then-existing prices. At its peak value of $ 75, Trump’s stake evaluated increased by $ 62 billion, about ten times their declared net value.
However, as this writing, the price of Trump tokens has declined, leading to the estimated price of their share to $ 15 billion.
The evaluation of Trump tokens is more than doubled than its extremes, which is more than doubled from their net worth, making their political impact and financial complication between personal property a continuous point.
And this is not just a red flag. Reports suggest that 94% of Trump and Melania tokens are conducted by just 40 purse-a level of concentration that can easily be exploited for insider trading or pump-end-dump plans.
Meanwhile, market volatility has already killed the coin barely. The price of Trump tokens has fallen by 32% in the previous week, the decline associated with the widespread crypto disturbance and the decisions of Trump’s economic policy, including the proposed tariffs on China, Canada and Mexico.
However, some of these tariffs have been temporarily rolled back, which has recovered the market.
Legal gray field and political pressure
Public citizen’s filing follows a growing investigation from democratic MPs. On 22 January, Senator Elizabeth Warren called To examine the relationship of expansion for Trump’s coins.
Around the same time, the representative Gerald Konoli picked up Worry On Trump’s financial behavior with the World Liberty Financial (WLFI), another Crypto unit with which it is allegedly associated.
At this stage, it is not clear that doj or Oge will take formal action. Historically, sitting presidents have been given a comprehensive way in financial matters.
A 2024 Supreme Court verdict also Established In some cases an example for the President’s immunity is complicating any legal efforts to potentially keep Trump accountable.
However, it cannot even be done for personal benefits while in the immune office. If an investigation suggests that Trump was personally benefited from the sale of Meme coins while using its presidency to promote, it can set a legal example with far -reaching consequences. .
Public citizens have underlined several possible tasks if Trump is found in violation of federal law, including ending the sale of meme coin, refunding money to buyers, and pursuing additional punishment.
Meanwhile, Trump’s supporters have largely dismissed the dispute. Some argue that Crypto represents a new financial range that the existing laws do not completely cover, while others see it as just another chapter in the ongoing political battle between Trump and his critics.
Memm coin ‘Wild West’ meets a regulator recanning
Over the years, meme coins thrive in a chaotic environment, where speculation overtakes the substance, and the viral trends can turn a joke into a billion-dollar property overnight. But that freewing era is running in severe resistance.
Legal challenges are growing from all directions, and the incidence of the last few weeks suggests that screws are tightening the meme coins as never before.
On 5 February, the pump. Fun, a Solana (Sol) based platform, which is known to launch the coins of the meme with the Little Overs, received a ceasefire letter from the Bervic Law and Wolf Popper LLP.
The letter accused the pump. There is a charge of enabling tokens and able to sell sales that misuse the name, logo and branding without permission.
One of the goals is dogshit 2, a token is reportedly designed to implement the Bervic law. The firm has demanded immediate removal or will follow further legal action.
For the pump, it is the latest in a string of legal troubles. The platform is already facing two class-class cases under the leadership of Bervik Law.
The first trial filed on 16 January claims that peanut the squirrel (PNUT), one of the several memes tokens launched on the stage, was an unregistered security promoted through impressive publicity.
Second, was filed on 30 January, pump. Fun’s operator, Baton Corporation Limited targets, accusing him of running a Ponzi -like scheme.
According to the complaint, Pump. Fun collected at a fee of about $ 500 million, giving the facility of misleading token launch, leaving investors with useless assets.
Ahead road
The main question is no longer just whether meme coins should be present, but they should be held responsible when they increase moral or legal concerns.
Should public data such as pump what benefits from irregular digital assets without any inspection should be allowed to benefit?
If legal action against the two continues to be obtained, they can affect the future of meme coins-how do they do only do business, but that the free-free-market approach of the past remains durable.
As the regulatory investigation increases, meme coins can withstand more overseas than ever.
Whether they develop in more structured, regulated asset class or see restrictions that limit their growth, it will depend on how these legal battles come up in the coming months.
