Former SEC Crypto Advisor: Trump is Involved in a Cryptocurrency Scheme that Harms Investors

ChainCatcher news, according to The New York Times, earlier this year, the cryptocurrency Trump launched by Trump sparked a speculative frenzy in a short period of time. However, what worries government regulators is that while the Trump family profits, Trump is rapidly pushing to end the regulatory crackdown on cryptocurrencies by multiple government agencies. Former SEC cryptocurrency advisor Corey Frayer stated, "President Trump is engaging in a cryptocurrency scheme that harms investors while appointing financial regulators that will weaken victim protections, which could shield him and his family from enforcement actions."

The launch of the Trump meme coin marks the first time the Trump family has directly marketed a new cryptocurrency token to ordinary investors. These products, which saw large early purchases followed by rapid sell-offs, have raised alarms among New York regulators, who described these operations as "pump-and-dump" schemes and warned that they could lead to significant losses for later investors. There is currently no evidence that Trump or his associates artificially inflated the price of Trump or engaged in insider trading.