Public citizen urges DOJ, OGE probe into Trump's memecoin launch allegations
Public citizen urges DOJ, OGE probe into Trump's memecoin launch allegations
U.S. consumer watchdog Public Citizen has filed a complaint with the Department of Justice (DOJ) and the Office of Government Ethics (OGE), urging an investigation into whether President Donald Trump violated federal laws by promoting his official Solana-based memecoin.
The organization argues that federal law prohibits government officials from soliciting gifts, and Trump’s promotion of the token could be a violation, reports The Block.
Public Citizen also raised concerns about potential foreign influence, as cryptocurrency transactions make it difficult to track buyers. The TRUMP memecoin saw a meteoric rise, reaching a $75 billion valuation before collapsing amid the launch of Melania Trump’s competing memecoin, MELANIA. Both tokens have since dropped significantly, with TRUMP down 76% and MELANIA down 88% from their peaks.
Calls for termination and refunds
Although the memecoin’s website states that Trump is not directly selling the tokens, it acknowledges that 80% of the project is owned by CIC Digital LLC, an entity affiliated with The Trump Organization. Public Citizen argues that purchases of TRUMP tokens are equivalent to donations rather than investments, making them legally questionable.
The watchdog has urged the DOJ and OGE to take action, potentially leading to the termination of the token sale and refunds to buyers. Meanwhile, TRUMP is currently trading at $18.66 with a market cap of $3.7 billion. The White House, DOJ, and Trump’s team have yet to comment on the complaint.
