Trump Faces Legal Fire for Using Presidential Seal at $TRUMP Memecoin Event
Former President Donald Trump is facing fresh criticism after he spoke at a private dinner for $TRUMP memecoin investors while standing behind a podium emblazoned with the official seal of the president of the United States — a move that may violate federal law. The event took place at the Trump National Golf Club in Virginia, where 220 investors attended and contributed a total of $148 million.
The use of the presidential seal at private or commercial events is prohibited under federal law because it could give the impression that the U.S. government is endorsing the event, according to Cointelegraph. Violations could result in fines or up to six months in prison, Cornell Law School noted.
White House spokeswoman Karoline Leavitt said the event was a “private event” and “not related to the White House,” downplaying concerns about its legitimacy.
Calls for Congressional Investigation and Democratic Response
Shortly after the event, 35 House members sent a letter to the Justice Department, asking for an investigation into whether the dinner violated federal anti-bribery laws or the Foreign Emoluments Clause of the Constitution.
Bloomberg reported that the majority of the investors in attendance were likely foreigners, based on their ties to cryptocurrency exchanges that do not serve U.S. citizens. This raised concerns about the potential for foreign financial interference.
Senator Elizabeth Warren called it “a corrupt orgy,” while Chris Murphy described it as “the most brazen act of corruption by a President.” Even Cynthia Lummis, a Republican who supports cryptocurrency, expressed deep concerns.
Market Impact and Investors
The value of the memecoin $TRUMP is currently hovering around $12.67, down 83% from its peak of $74.27 in January 2025. According to CoinMarketCap, the token currently has 200 million tokens in circulation and a market capitalization of around $2.5 billion.
A CNBC analysis revealed that 58 wallets made more than $10 million each, totaling around $1.1 billion in profits, while 764,000 wallets lost money, mostly retail investors.
Immediately after the April dinner announcement, the price of $TRUMP surged from $9 to $14, with 436 large transactions (over $100,000) in just five days. Additionally, the entities behind the memecoin have raked in nearly $100 million in transaction fees in just the first two weeks.
Impact on policy and ethics in the crypto industry
The incident has raised many questions about presidential conflicts of interest in the age of digital assets. Richard Painter, a former ethics lawyer under President George W. Bush, told Axios that no president has ever raised money from a personal project while in office.
The event has also complicated Republican efforts to push for crypto-friendly laws. Rep. French Hill, who is leading negotiations on a regulatory framework for stablecoins, said the event was “an unnecessary distraction” from policymaking.
Concerns about foreign financial influence
Some ethics watchdogs are concerned that the anonymous structure of memecoins could allow foreign governments or entities to buy political influence through token purchases. CNN reports that the largest holders of $TRUMP are now concentrated overseas, including Justin Sun, the Chinese crypto billionaire facing charges from the SEC.
The Emoluments Clause of the Constitution prohibits the President from accepting “any gift or benefit” from a foreign government without congressional approval. This is being emphasized in the current special investigative requests.
Conclusion: A legal, financial, and ethical storm
The event at the Trump Golf Club was more than just a dinner for investors. It became a meeting point for legal, political, and ethical debates as cryptocurrencies increasingly infiltrate American politics. The controversy surrounding $TRUMP will continue to be a major test of the legal framework for digital assets, as well as the transparency and ethics of leaders in the Web3 era.