Trump Under Investigation for Alleged Violation of Federal Law During Promotion of $Trump Memecoin
Government watchdog, Public Citizen, demands probe into whether president Trump solicited personal gifts through cryptocurrency scheme.
Public Citizen has formally requested a federal investigation into Trump promotion of the Solana-based $TRUMP meme token, alleging it violates federal gift solicitation laws.
In a complaint filed Wednesday with the Department of Justice and the Office of Government Ethics, the group argued Trump’s social media endorsements of the token crossed legal boundaries.
In the filed complaint, Public Citizen emphasized that while federal law permits presidents to accept gifts—even from prohibited sources—, they explicitly prohibit soliciting them for personal gain.
Trump Social Media Posts Elicits Legal Scrutiny
The complaint focuses on Trump’s January 2024 social media activity. On January 17, Trump tweeted with his official X handle, “My NEW Official Trump Meme is HERE! Get YOUR $TRUMP NOW,” directing followers to a website selling the token.
The token’s value quickly skyrocketed reaching over $15 billion in market cap and becoming the 18th largest cryptocurrency (the fastest ever for any cryptocurrency).
However, data from Bubblemaps reveals that the TRUMP token’s largest holder—CIC Digital LLC, a Trump Organization affiliate—owns 80% of the token’s supply. As the sole beneficiary, Trump stands to profit directly from sales. The complaint argues the token’s branding as a non-investment effectively brands purchases as gifts.
Public Citizen Legal and Ethical Concerns
Public Citizen’s complaint highlights overlapping legal risks. Federal law (18 U.S.C. § 201) bars officials from soliciting gifts tied to their position, while the Constitution’s Emoluments Clause blocks foreign payments to officeholders.
“Because of the nature of a cryptocurrency exchange, it is difficult to know whether foreign state actors are gifting the president by way of purchasing a Trump meme.” they warned. They also cautioned that unchecked solicitations could normalize profiteering from public office, eroding ethics laws.
Additionally, Public Citizen also warns that allowing such schemes risks setting a dangerous precedent. “Should the president be allowed to enrich himself this way, other politicians might follow,” the complaint states. This could render federal gift solicitation laws useless.
Public Citizen urged the DOJ and OGE to investigate whether Trump’s actions violated gift solicitation laws. If confirmed, they recommend halting token sales, recouping funds, and issuing penalties.
The extent of punishment, however, is not known as the president currently has immunity against virtually most forms of persecution.
