US watchdog lodges complaint with DOJ, OGE over President Trump's official memecoin

U.S. consumer watchdog Public Citizen lodged a complaint with the Department of Justice and Office of Government Ethics on Wednesday, urging it to investigate whether Donald Trump had violated federal law barring the President from soliciting gifts in connection with his official memecoin.

Additionally, Public Citizen highlighted concern that due to the nature of cryptocurrency transactions, it is difficult to know whether foreign state actors are also “gifting the president by way of purchasing a Trump meme,” urging the DOJ and OGE to investigate that issue as well.

The high-profile and controversial launch of Trump’s official Solana-based memecoin came during the premiere Crypto Ball in Washington on the Friday night before his inauguration as President on Jan. 20.

A frenzy of trading activity lifted the TRUMP token to a fully diluted valuation of more than $75 billion at one point, briefly surpassing the largest memecoin, DOGE. That was until the launch of the returning First Lady Melania Trump's own memecoin, MELANIA, caused a collapse in the value of TRUMP. TRUMP and MELANIA have subsequently fallen around 76% and 88% from their respective peaks, according to The Block’s Prices Page.

“Federal law strictly regulates payments to government officials, including gifts,” Public Citizen's Bartlett Naylor and Dr. Craig Holman wrote in the letter. “Although the president may receive gifts, he may not ‘solicit’ gifts,” it said, noting that although there are several exemptions from the prohibition, none exempts soliciting purchases for personal gain.

“President Trump’s promotion of a Trump meme appears to violate this prohibition,” it alleged, citing his posts to X on Jan. 17 and Jan. 20 and a Truth Social post on Jan. 21.

Seeking termination of the memecoin sale and return of funds

While the official memecoin’s website states that “This product is not distributed or sold by Donald J. Trump,” it also explains that it is 80% owned by CIC Digital LLC, an affiliate of The Trump Organization, Naylor and Holman said. CIC Digital is 100% owned by the Donald J. Trump Revocable Trust and Donald Trump is the “sole beneficiary” of that trust, they added.

The website also states, “Trump Memes ... are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.” Accordingly, a person sending money for a Trump meme is not purchasing a tangible product, instead only receiving a “digital blockchain receipt” — similar to a donor sending a check and receiving digital confirmation, Public Citizen claimed.

“In short, it appears Trump is not soliciting money in exchange for an investment or tangible product (such as a Bible, sports shoes, or a guitar), but soliciting money in exchange for nothing—that is, asking for a gift that will benefit him personally,” Naylor and Holman said.

If the DOJ and OGE agree TRUMP constitutes an impermissible gift solicitation, Public Citizen asked that they make appropriate recommendations, including “termination of the meme sale, return of monies and any other available remedies.”

TRUMP is currently trading for $18.66 at a market cap of $3.7 billion, per The Block’s Official Trump Page.

The Block reached out to The White House, the DOJ and the Trump Meme project for comment. The OGE declined to comment.