Investigation of $TRUMP Crypto by U.S. Senate Includes Ethics, Foreign Deals, and Market Manipulation

An inquiry has been launched by a Senate subcommittee into the $TRUMP cryptocurrency, citing various potential legal breaches and ethical dilemmas related to former President Donald Trump. Fight Fight Fight LLC and other companies associated with Trump hold an overwhelming 80% grip on the total supply of the coin and have reportedly raked in around $350 million in trading fees.

The promotion of special perks, such as a chance to have dinner with Trump for top $TRUMP holders, raised concerns surrounding potential pay-to-play practices and probable foreign influence. The Senate’s Permanent Subcommittee on Investigations (PSI) has begun scrutinizing the inception, ownership structure, and promotional strategies associated with the $TRUMP coin. Concerns have been mounting regarding potential ethical and legal violations following a surge in the coin’s value and controversial marketing tactics.

In a detailed examination of the $TRUMP coin’s launch and ownership, it was observed that the cryptocurrency was introduced on January 17, 2025, by Fight Fight Fight LLC, backed by direct endorsements from Donald Trump himself. Originally intended as a symbol of political backing rather than a sound financial investment, $TRUMP’s value skyrocketed by over 1,000% within 48 hours, peaking at $74.27 before its rapid decline to $7.42 by April, indicative of patterns closely resembling crypto market manipulation techniques like “pump and dump.”

Reports suggest a core group of insiders, which included entities related to Trump, may have enjoyed privileged access to reduced token prices before official trading commenced. Public disclosures and blockchain data show that two Trump-affiliated companies, Fight Fight Fight LLC and CIC Digital LLC, control a substantial 80% share of the total one billion $TRUMP tokens. These companies also benefit from transaction fees, accumulating an estimated $350 million to date, with a substantial upsurge in fees generated after the controversial announcement of a “Dinner with Trump” giveaway.

The Senate inquiry is particularly concerned about the implications of marketing tactics like the “Dinner with Trump” promotion, where top token holders were offered exclusive perks in exchange for a speculative investment in $TRUMP. This method attracted renewed interest in the token, causing a significant surge in its price and trading volumes. The Senate sees this approach as a potential avenue for pay-to-play arrangements, raising critical questions about transparency, equity, and legality in both political fundraising and financial practices within the United States.

Potential national security and legal implications are unearthed as the investigation delves further into the ease with which foreign entities, including governments, could engage in significant $TRUMP holdings, potentially enriching Trump and his entities via anonymous blockchain transactions. The subcommittee is worried about potential breaches of the Constitution’s Foreign Emoluments Clause and illegal foreign influence, particularly considering Trump’s active role within U.S. politics.

As the investigation unfolds, the implications of the $TRUMP cryptocurrency case on both the crypto industry and the political landscape are significant. It raises awareness about the exploitation of cryptocurrencies for political motives and the necessity for enhanced regulation regarding politically affiliated crypto assets, along with a demand for heightened financial disclosure standards and more comprehensive scrutiny of token launches linked to public figures. The investigation’s outcome could potentially shape the future of decentralized finance, ethical standards in public offices, and U.S. national security protocols.