Key Insights:
- Trump-linked TRUMP memecoin under Senate probe for alleged insider deals.
- Lawmakers eye foreign ties, citing Justin Sun’s top $TRUMP holdings.
- Senate demands records on $350M earned amid “Dinner with Trump” surge.
A Permanent Subcommittee on Investigations is reviewing President Donald Trump’s cryptocurrency project amid allegations of corruption and foreign involvement. The inquiry centers on a cryptocurrency called $TRUMP, launched in January 2025 by Fight Fight Fight LLC. The token’s rapid price movements, promotional activities, and foreign investments have raised ethical and legal concerns.
The Subcommittee is requesting records and explanations from Fight Fight Fight LLC to assess potential conflicts of interest and violations of federal law. According to the request, Fight Fight Fight LLC and its affiliates, 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 Activity
Reports show the TRUMP memecoin surged in value shortly after its launch. The price rose by far over ten fold in a space of two days. Although, the value fell to their minimum and this provoked different arguments over manipulation of the market. By April 8 it float at $7.42 after reaching its high of $74.27.
Some analysts said the token’s action mimics other behaviors seen in crypto space, including pump and dump schemes. Others include pumping the stock with insiders immediately selling the stocks at much higher price. Specifically, the Subcommittee has inquired about any probes into insider early access or trading prior to major promotional announcements by the company.
In support of the coin the president gave speeches and encouraged others to support the idea of the coin. He also encouraged users to join what he called “my very special Trump Community.” These promotions appeared to influence trading behavior. A recent contest titled “Dinner with Trump” was announced in April. The event offered the top 220 coin holders a private dinner with the former President, sparking a new price surge.
Concerns Over Foreign Investment and Constitutional Violations
The Senate is also reviewing potential foreign financial involvement in the project. Blockchain data and a public leaderboard for the contest show that one of the top holders of $TRUMP is Justin Sun. Mr. Sun is a Chinese-born entrepreneur 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 the coin to channel money to the former President. This could violate the Foreign Emoluments Clause of the Constitution. Lawmakers are requesting documentation about communications between Fight Fight Fight LLC and any foreign investors or governments.
They also asked for details about communications between the company and the White House, especially regarding the contest’s initial promise of a “VIP White House Tour.” That language was later removed, but the change raised questions about whether government resources were being used for private promotions.
Senate Request for Disclosures from Fight Fight Fight LLC
The Subcommittee has asked Fight Fight Fight LLC to provide a list of its owners, advisors, investors, and consultants. Lawmakers also want information about how the company is connected to Trump-affiliated businesses, including CIC Digital LLC and The Trump Organization.
According to analytics firms, $TRUMP has generated $350 million in trading fees for Fight Fight Fight LLC and its affiliates. The company reportedly earned almost $1 million in fees in the days following the “Dinner with Trump” contest announcement.
Officials are also reviewing whether the President or his companies personally profited from these transactions. The Subcommittee’s letter asks what policies, if any, exist to prevent insider trading or coordinated market behavior around promotional events.
Legislative Tensions Over TRUMP Memecoin’s Crypto Oversight Measures
The inquiry is taking place as lawmakers debate broader cryptocurrency oversight. During a joint hearing of the House Financial Services and Agriculture Committees, Representative Maxine Waters criticized a bipartisan crypto market structure bill. She claimed the bill would weaken oversight and assist what she described as “Trump’s crypto corruption.”
Senator Elizabeth Warren also withdrew support for the bill. She expressed concerns that it might provide financial gains to the President through a related stablecoin called USD1. Warren stated during the hearing, “This legislation risks giving Trump an illegal windfall from his USD1 coin.”
The bill aims to define 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 revise the legislation.
Lawmakers have set a deadline of May 19, 2025, for Fight Fight Fight LLC to respond to the Subcommittee’s request.
