Key Takeaways:
• Public Citizen has filed a formal complaint with the DOJ and OGE, alleging that Trump’s memecoin launch may violate federal laws restricting gift solicitation by government officials.
• The watchdog also raised concerns over potential foreign influence, as crypto transactions make it difficult to track the origins of funds.
• Trump’s official Solana-based memecoin saw explosive growth before crashing, alongside the launch of Melania Trump’s own memecoin.
Watchdog Challenges Trump’s Crypto Launch
Consumer advocacy group Public Citizen has urged the Department of Justice (DOJ) and the Office of Government Ethics (OGE) to investigate whether Donald Trump’s memecoin launch violated federal laws prohibiting gift solicitation by government officials.
The group claims that Trump’s endorsement and promotion of the token—through social media posts on X and Truth Social—could be seen as a direct request for financial contributions that personally benefit him. Federal law strictly regulates payments and gifts to public officials, and no known exemptions apply to this case, according to Public Citizen’s Bartlett Naylor and Dr. Craig Holman.
Foreign Influence Concerns
One of the major concerns raised in the complaint is that cryptocurrency transactions lack transparency, making it difficult to determine whether foreign actors are purchasing Trump’s memecoin as a way to provide financial support. Public Citizen has called on the DOJ and OGE to investigate whether international interests may be involved.
The Rise and Fall of Trump’s Official Memecoin
Trump’s official Solana-based memecoin was launched during the Crypto Ball in Washington, just days before his January 20 inauguration. The token TRUMP saw a meteoric rise, reaching a $75 billion fully diluted valuation, briefly surpassing Dogecoin (DOGE) as the largest memecoin in the market.
However, its momentum was short-lived. The launch of Melania Trump’s own token, MELANIA, triggered a market crash, with TRUMP and MELANIA plunging 76% and 88% from their peaks, respectively.
Legal Questions Surrounding the Token
While the official Trump memecoin website claims that the token is “not distributed or sold by Donald J. Trump,” it also states that 80% of the token is owned by CIC Digital LLC, a company affiliated with the Trump Organization. Public Citizen noted that CIC Digital is fully owned by the Donald J. Trump Revocable Trust, with Trump as the sole beneficiary.
Public Citizen argues that buyers of the TRUMP token are not purchasing an investment or a physical product but are instead sending money for a digital receipt, similar to a donation.
“Trump is not selling an asset like a Bible or a guitar—he’s simply collecting money for nothing in return,” the watchdog alleged in its letter.
Public Citizen’s Request: Shut It Down
If the DOJ and OGE determine that Trump’s memecoin sale constitutes an improper gift solicitation, Public Citizen has requested:
• An immediate termination of the memecoin sale
• A return of all funds raised
• Further legal remedies if necessary
At the time of writing, TRUMP is trading at $18.66, with a market cap of $3.7 billion, according to The Block’s Trump Price Tracker.
The Block reached out to The White House, DOJ, and the Trump Meme Project for comment. While the OGE declined to comment, Kraken’s official X account simply responded with “We are all Satoshi.”
What’s Next?
With Trump’s growing involvement in crypto and blockchain, his memecoin launch raises ethical and legal questions that could have broader implications for the industry.
Should government officials be allowed to launch and promote personal crypto projects? Let us know your thoughts!