Trump Memecoin Faces Charges of Market Manipulation and Insider Trading

A Permanent Subcommittee on Investigations is examining the cryptocurrency project of President Donald Trump in light of corruption allegations and foreign involvement. The investigation focuses on a cryptocurrency called $TRUMP, launched by Fight Fight Fight LLC in January 2025. Rapid price volatility, advertising activities, and foreign investment in the token have raised ethical and legal concerns. The subcommittee is requesting Fight Fight Fight LLC to provide documentation and explanations to assess potential conflicts of interest and violations of federal law. As requested, Fight Fight Fight LLC and its affiliated companies, including CIC Digital LLC, Celebration Cards LLC, and DTTM Operations LLC, collectively hold 80% of the total coin supply. Allegations of market manipulation and insider trading Reports indicate that the memecoin TRUMP saw its value increase immediately after launch. The price surged more than tenfold within two days. However, the value has since dropped to a minimum, leading to various controversies regarding market manipulation. As of April 8, it had risen to $7.42 after reaching a peak of $74.27. Some analysts have indicated that the actions of this token mimic other behaviors seen in the cryptocurrency space, including pump and dump schemes. Other behaviors include pumping stocks with insiders immediately selling the stocks at much higher prices. Specifically, the Subcommittee has requested an investigation into any insider trading or early access related to major promotional announcements from the company. To support this currency, the president gave a speech and encouraged others to endorse the idea of this currency. He also urged users to join what he calls "My Very Special Trump Community." These promotional programs seem to influence trading behavior. A recent contest called "Dinner with Trump" was announced in April. This event offered 220 holders of the leading currency a private dinner with the former president, creating a new price surge. Concerns about foreign investment and constitutional violations The Senate is also considering the possibility of foreign financial involvement in the project. Blockchain data and public rankings for the competition show that one of the largest holders of $TRUMP is Justin Sun. Mr. Sun is a Chinese-born entrepreneur who is currently facing civil charges from the Securities and Exchange Commission (SEC) for alleged market manipulation. The subcommittee raised concerns that foreign actors, including foreign governments, could use this currency to transfer funds to the former president. This could potentially violate the Foreign Compensation Clause of the Constitution. Lawmakers are requesting documents regarding communications between Fight Fight Fight LLC and any foreign investors or governments. They also requested detailed information about the communication between the company and the White House, particularly regarding the initial promise of the contest for the "VIP White House Tour." That content was later removed, but this change raises questions about whether government resources are being used for private promotional programs. The Senate's request for the disclosure of information from Fight Fight Fight LLC The subcommittee has requested Fight Fight Fight LLC to provide a list of its owners, advisors, investors, and consultants. Lawmakers also want to know information about how this company connects with businesses affiliated with Trump, including CIC Digital LLC and The Trump Organization. According to analysis companies, $TRUMP has generated $350 million in transaction fees for Fight Fight Fight LLC and its subsidiaries. The company is said to have earned nearly $1 million in fees in the days following the announcement of the "Dinner with Trump" contest. Officials are also considering whether the President or his companies have personally benefited from these transactions. The letter from the Subcommittee inquires about any policies in place to prevent insider trading or coordinated market activities around promotional events. Legislative tension over cryptocurrency surveillance measures of TRUMP Memecoin The investigation is underway as lawmakers debate broader cryptocurrency oversight. During a joint hearing of the House Financial Services and Agriculture Committees, Representative Maxine Waters criticized a bipartisan bill on cryptocurrency market structure. She claimed that this bill would undermine oversight and support what she described as "Trump's cryptocurrency corruption." Senator Elizabeth Warren has also withdrawn her support for the bill. She expressed concern that it could provide financial gains to the President through a related stablecoin called USD1. Warren stated during the hearing, "This bill risks giving Trump illegal profits from his USD1 currency." The bill aims to define the oversight responsibilities between the SEC and the Commodity Futures Trading Commission. However, the ongoing investigation into the $TRUMP coin has added pressure to delay or amend the legislation. Lawmakers have set a deadline of May 19, 2025, for Fight Fight Fight LLC to respond to the Subcommittee's request.