Trump's Memecoin: A $100M Gift Solicitation Scandal

Security concerns have been raised over a cryptocurrency token named after former US President Donald Trump, known as the TRUMP memecoin. The non-profit organization Public Citizen has urged the US Office of Government Ethics (OGE) and Department of Justice (DOJ) to investigate the token, alleging potential violations of federal law barring gift solicitation by US officials.

The complaint filed by Public Citizen argues that Trump's promotion of the TRUMP memecoin may have violated the prohibition on government officials soliciting gifts. The US president promoted the token on social media platforms such as X and Truth Social before and after entering the White House. The complaint highlights that Trump is the principal owner of the official memecoin, with 80% of the supply owned by CIC Digital LLC, an affiliate of the Trump Organization.

The non-profit organization contends that Trump is soliciting money in exchange for nothing, potentially asking for a gift that would benefit him personally. Additionally, the complaint raises concerns about the potential participation of foreign states in purchasing the memecoin, presenting a national security issue. Ethereum founder Vitalik Buterin has previously spoken about the risks of politician tokens, noting that they could be used as vehicles for unlimited political bribery, including from foreign nation-states.

A recent report from Reuters revealed that entities behind Trump's memecoin accumulated around $100 million in trading fees in less than two weeks. Analysis from crypto data firms estimated that the TRUMP token generated between $86 million and $100 million in fees by January 30. However, it remains unclear if the US president has personally received any portion of the fees or the ownership of the other entities behind the memecoin.

Public Citizen warns that if the president can enrich himself through this method, other politicians could follow his example, making the prohibition on solicitation and receipt of gifts by officials other than the president virtually meaningless. The investigation into the TRUMP memecoin is ongoing, and the outcome remains uncertain.