U.S. senators urge SEC probe into possible TRUMP rug pull

Two Democratic U.S. senators sent a formal letter to the U.S. SEC urging an investigation into possible illegal conduct and fraud involving President Donald Trump’s meme coin Official Trump (TRUMP), CNN reported. Elizabeth Warren and Richard Blumenthal delivered the letter to SEC Chairman Paul Atkins on Aug. 3, local time, according to the report. In the letter, the senators raised the possibility that TRUMP could amount to a rug pull. Separately, blockchain analytics firm TRM Labs said TRUMP does not appear to have been designed for a rug pull, but its high concentration of insider-held supply warrants close oversight. TRM Labs added that early buyers and token issuers made profits, while most investors who bought later suffered heavy losses, and said a structure in which nearly 1 million retail investors were left holding losses could increasingly appear problematic over time even if it does not qualify as a rug pull. Trump is also known to have collected about $636 million in royalty income tied to TRUMP last year alone.