Trump Memecoin Investors Lose 3.8 Billion as Bessent Defends Crypto Gains
Nearly 1 million investors who bought Donald Trump’s memecoin lost a combined 3.8 billion dollars, according to a New York Times report based on Chainalysis data, adding a new retail investor loss figure to the growing fight over Trump’s crypto profits.
The report says most retail investors lost money while more sophisticated traders fared better. That distinction matters because memecoins are highly speculative assets, and politically branded tokens often depend on attention, timing, and insider like market awareness rather than long term fundamentals.
Treasury Secretary Scott Bessent defended Trump’s crypto earnings in an interview with CBS News, saying he did not see an appearance problem. CBS reported that Trump has earned about 1.4 billion dollars from crypto ventures since beginning his second term, including the Trump memecoin and World Liberty Financial.
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The White House and Trump have argued that his assets are managed separately and that he is not directly involved in day to day investment decisions. Trump has also framed crypto as part of a broader push to make the United States a leader in digital assets.
Democrats and ethics critics see the issue differently. Senator Elizabeth Warren has warned that crypto legislation without Trump ethics safeguards could deepen conflicts tied to the president’s family crypto ventures. Senator Richard Blumenthal previously opened an inquiry into Trump related crypto ties, citing potential conflicts and national security risks.
The practical consequence is investor protection. If retail buyers lost billions while politically connected issuers and early traders profited, the story could strengthen calls for disclosure rules, conflict safeguards, and clearer limits on public officials profiting from assets affected by federal policy.
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