Consumer Advocacy Group Asks DOJ to Investigate Trump's 'Money for Nothing' Memecoin Sale

Public Citizen has urged the U.S. Department of Justice to investigate whether President Donald Trump violated gift solicitation laws by promoting his memecoin.

Memecoin Launch Amounts to Solicitation, Says Public Citizen

A consumer advocacy group, Public Citizen, has urged the U.S. Department of Justice (DOJ) to investigate whether President Donald Trump violated gift solicitation laws by promoting his memecoin.

In a complaint filed with the U.S. Office of Government Ethics (OGE), Public Citizen asserts that Trump may have breached 18 U.S.C. 201, as implemented in 5 C.F.R. 2635. The law prohibits U.S. presidents from soliciting gifts from the public, yet Public Citizen argues that Trump did just that when he launched his memecoin.

As widely reported, Trump launched the memecoin some 48 hours before his inauguration as the 47th U.S. president. Initially priced under $7, the memecoin surged peaking just below $75 and momentarily ranking among the top 10 cryptocurrencies. However, its value has since declined, dropping below $20 on Feb. 3, along with a similar decline in value of a memecoin promoted by Trump’s wife.

‘Money in Exchange for Nothing’

While the launch sparked widespread interest in memecoins it also drew criticism, with some labeling TRUMP a “shitcoin.” Others raised concerns about the memecoin’s tokenomics, particularly Trump’s substantial holdings. Public Citizen echoed these concerns in its Feb. 5 letter to DOJ and OGE officials.

“Trump is the principal owner of the Trump Meme. The website explains that the memes are largely (80 percent) owned by CIC Digital LLC, ‘an affiliate of The Trump Organization.’ CIC Digital is 100% owned by the Donald J Trump Revocable Trust. Donald Trump is the ‘sole beneficiary’ of the revocable trust,” the advocacy asserted.

Although the advocacy group acknowledges that Trump is not soliciting money in exchange for an investment or tangible product, it accuses him of “soliciting money in exchange for nothing” through his memecoin. Public Citizen argues that allowing a U.S. president to enrich himself in this manner could encourage other politicians to follow suit, undermining the prohibition on solicitation in 18 U.S.C. 201.

According to Public Citizen, if an investigation determines that the memecoin sale constitutes an “impermissible gift solicitation,” steps should be taken, including terminating the meme sale and refunding monies.