Public Citizen Calls Investigation On TRUMP Promotion

Government watchdog group Public Citizen has filed a formal complaint with the Department of Justice and the Office of Government Ethics regarding President Donald Trump's launch of meme coins.

Government watchdog group Public Citizen has filed a formal complaint with the Department of Justice and the Office of Government Ethics regarding President Donald Trump’s launch of meme coins.

The group is urging an investigation into whether Trump violated federal laws by promoting and soliciting money for his Official Trump meme coin.

The complaint, submitted on Wednesday, cites social media posts from Trump on both X (formerly Twitter) and Truth Social. According to the submission, the US president used these platforms to promote the TRUMP coin and encouraged supporters to send money.

Further, Public Citizen alleges these posts were re-shared on January 20 and January 21, shortly after Trump was inaugurated. The group argues that this constitutes a potential violation of federal laws prohibiting the president from soliciting personal gifts.

“A president soliciting money from the general public for his personal enrichment would be a reprehensible abuse of the presidency. The Department of Justice and Office of Government Ethics owe it to the American people to thoroughly investigate whether Donald Trump’s solicitation is in violation of the law, and, if it is, take appropriate action to stop it,” an excerpt in the report read, citing Bartlett Naylor, a financial services advocate at Public Citizen.

The complaint also calls out Trump’s official website for the meme coin for stating that contributions to the project are purely in exchange for a digital receipt. According to the advocacy group, this suggests that the money received is not tied to any tangible product or service.

Public citizens are concerned that the funds collected may directly benefit Trump, potentially breaching federal ethics laws. Additionally, the complaint raises constitutional concerns.

Notably, the US Constitution forbids any president from accepting money or items of value from foreign sources. Given crypto transactions’ decentralized and anonymous nature, it isn’t easy to ascertain whether foreign state actors are purchasing Trump’s meme coin.

According to the complaint, this creates possible national security and foreign policy risks.

The latest complaint follows mounting scrutiny over Trump-affiliated cryptocurrencies. Two weeks ago, Senator Elizabeth Warren called for federal scrutiny of the TRUMP and MELANIA meme coins. As BeInCrypto reported, she warned of potential regulatory and ethical violations.

Around the same time, Democrats demanded an ethics probe into Trump’s involvement in meme coin-related financial dealings. They cited concerns about his association with World Liberty Financial.

“The expanding scope of President Trump—and by extension The Trump Organization’s—financial entanglements and quid pro quo promises are troubling,” wrote US Representative Gerald Connolly.

Despite these growing concerns, Trump recently denied knowledge of the meme coin. However, the denial came amid significant market fluctuations in the coin’s value, adding further speculation about his level of involvement.

Nevertheless, public interest in the TRUMP meme coin has surged. A recent survey found that over 40% of TRUMP meme coin holders are first-time investors, illustrating the coin’s strong appeal among inexperienced traders. At the same time, World Liberty Financial (WLFI), Trump’s DeFi venture, has experienced a dramatic rise in token sales following the launch of the TRUMP meme coin.

Further analysis of blockchain transactions has also revealed concerning centralization issues. A recent Chainalysis report found that 94% of TRUMP and MELANIA tokens are held by just 40 wallets. This raises questions about potential price manipulation and insider advantages.

Beyond ethical and regulatory concerns, Trump’s meme coin launch has also prompted discussions about its legal and tax implications. Cryptocurrency experts warn that such a venture could carry significant tax liabilities for Trump and investors.

Moreover, if the investigation finds that Trump’s meme coin solicitation violates federal law, the Public Citizen’s complaint suggests immediate actions. These may include terminating the sale, refunding the money, and implementing additional penalties.

The Department of Justice and the Office of Government Ethics have yet to respond to the filing.