US Congress Calls for DOJ Probe into Trump’s Memecoin Dinner Invitation
A group of 35 Democratic members of the US House of Representatives has urged the Department of Justice (DOJ) to examine whether President Donald Trump broke any laws by offering a private dinner to top holders of his cryptocurrency token, $TRUMP. The letter, led by Congressman Sean Casten from Illinois and Congressman Adam Smith from Washington, requests an investigation into potential breaches of federal bribery laws and the foreign emoluments clause of the US Constitution.
Image 1: President Donald Trump (Source: Business Insider)
Concerns over Influence and Foreign Investment
The lawmakers are worried that the invitation could allow wealthy investors, including foreign nationals, to gain privileged access to the President. Such access might be used to sway US policy decisions, potentially undermining the integrity of government processes. The foreign emoluments clause is designed to prevent government officials from receiving benefits or gifts from foreign entities without congressional approval.
President Trump, who is currently serving as the US President, launched the $TRUMP meme token shortly before beginning his second term. The token’s value surged to a high of $75 but rapidly plummeted, resulting in significant financial losses for many investors. Industry experts estimate the token’s crash wiped out around $2 billion in investor funds.
Despite the losses, the Trump family and affiliated business partners have collected over $320 million in transaction fees linked to the token. Notably, at least $1.35 million in fees were earned after Trump announced the private dinner invitation.
The Private Dinner and Token Surge
In April, President Trump revealed plans to host a dinner at his golf course near Washington, D.C., for the top 220 investors in the $TRUMP token. The top 25 investors were promised enhanced access, including private time with Trump before the dinner and an exclusive tour of the White House. The four biggest investors would also receive a special edition Trump watch as a reward.
Following the announcement, the $TRUMP token’s price jumped by over 60 percent, as many rushed to buy enough tokens to qualify for the invitation.
The congressional letter highlights the risks that this arrangement poses, especially concerning foreign influence. The letter warns that foreign nationals could use this token as a covert means to fund political favour or access, circumventing US campaign finance laws that prohibit foreign donations.
An investigation by Bloomberg found that the majority of the top 25 token holders are likely foreign nationals. Among them is Justin Sun, a Chinese billionaire involved in various crypto ventures. Sun faces legal action from the US Securities and Exchange Commission (SEC) over alleged market manipulation, though the Trump administration paused these proceedings after he invested $30 million in another Trump-related crypto initiative called the World Liberty Project.
Sun further increased his investment by $45 million in this project while also boosting his holdings in the $TRUMP token, fuelling concerns that these investments may be intended to gain political favour.
Several companies have also openly stated their intention to use the $TRUMP token to curry favour with the President. For example, GD Culture Group, which assists companies in selling products via TikTok, has a Chinese subsidiary that may be influenced by the Chinese government. Shortly after Trump hinted at possibly delaying the TikTok ban in the US, the company announced plans to purchase $300 million in $TRUMP tokens.
Similarly, Freight Technologies, a Houston-based firm specialising in cross-border logistics between the US, Mexico, and Canada, declared it would acquire $20 million in $TRUMP tokens. The company’s stated aim was to advocate for balanced and free trade between the US and Mexico.
After the deadline for qualifying for the dinner passed, many top investors sold off the majority of their tokens. This behaviour suggests that the primary motivation was not long-term investment but rather to secure influence.
Image 2: Trump at a dinner (Source: Quartz)
Legal and Ethical Questions Raised
The identities behind many of the top investor wallets remain largely anonymous due to the nature of digital tokens. However, Bloomberg’s analysis supports the conclusion that many are foreign nationals, which adds to fears about hidden foreign influence.
Charles Dent, former chair of the House Ethics Committee, warned that foreign governments are likely exploiting this opportunity to gain favour with President Trump. He described the situation as highly improper and flagged serious legal and ethical issues.
Anthony Scaramucci, who served briefly in the Trump administration, criticised the token and dinner offer as a clear example of extreme corruption.
Ethereum co-founder Vitalik Buterin commented on the dangers of politicians endorsing coins like $TRUMP, warning that such tokens could be exploited as a tool for unchecked political bribery by foreign powers.
The foreign emoluments clause is specifically designed to block federal officials from accepting gifts or benefits from foreign governments without congressional consent. The lawmakers’ letter stresses the importance of enforcing this constitutional safeguard in light of these developments.
The DOJ’s Public Integrity Section, created following the Watergate scandal to address corruption in government, has been called upon by the Congress members to investigate these allegations promptly and impartially.
The letter stresses the need to avoid political bias and to ensure accountability and the rule of law are upheld. If the investigation reveals wrongdoing, the lawmakers expect appropriate legal consequences.
The letter is signed by prominent Democrats including Nanette Barragán, Rashida Tlaib, and Zoe Lofgren, underscoring the push for transparency and ethical governance.
