The Trump Wallet launch sparked controversy due to unclear ownership, Trump family denials, and concerns about fraud, ethics, and market manipulation.
Despite $TRUMP coin hype, centralization and insider profits raised alarms, with retail investors facing heavy losses and regulatory scrutiny intensifying.
Legal, ethical, and trust issues exposed in the Trump Wallet case highlight the dangers of celebrity-driven crypto projects and weak regulatory oversight.
In early June 2025, the crypto market was shaken by the “Trump Wallet” incident.
NFT platform Magic Eden announced the launch of the $TRUMP Wallet, claiming it was developed in collaboration with the $TRUMP meme coin team. The wallet supported multiple digital assets and promised up to $1 million in user rewards.
However, public denials from members of the Trump family, vague project details, and high market speculation quickly made the wallet a hot topic.
Questions around its legitimacy exposed deeper issues in the crypto industry, including regulation, ethics, and transparency.
THE RISE OF THE TRUMP WALLET AND MEME COIN MANIA
The Trump Wallet emerged from the hype surrounding the $TRUMP meme coin. Launched on January 17, 2025, this Solana-based token featured a cartoon image of Trump throwing a punch, referencing the assassination attempt he survived in July 2024.
Its release came just before Trump’s second presidential inauguration. The token surged 300% on day one and reached a peak market cap of $27 billion.
But the excitement masked serious risks. The token’s price dropped from a high of $74 to around $11, leaving roughly 764,000 small investors in the red.
Meanwhile, the Trump Organization and related entities, which controlled 80% of the supply and collected transaction fees, made an estimated $324 million in profit. This extreme centralization raised red flags about potential market manipulation.
Against this backdrop, Magic Eden announced the $TRUMP Wallet on June 3. They claimed it was the “official” wallet tied to the $TRUMP coin and allowed users to trade not just $TRUMP, but also Bitcoin, Ethereum, and more.
Registration opened at TrumpWallet.com, and high-value rewards were promoted to attract users. The branding heavily relied on Trump’s image and rode the wave of meme coin enthusiasm.
However, the Trump family’s denial of any connection cast a shadow over the project, highlighting its complex commercial structure and potential risks.
FAMILY DENIALS AND PROJECT OWNERSHIP MYSTERY
At the heart of the Trump Wallet controversy was the Trump family’s direct disapproval. Eric Trump and Donald Trump Jr.
both posted on X that they knew nothing about the $TRUMP Wallet. Eric emphasized that the Trump Organization had never approved the project and revealed that their own wallet, tied to World Liberty Financial (WLFI), was still in development.
This public contradiction raised doubts about whether the Trump Wallet had any official backing.
Although Magic Eden claimed to have partnered with the $TRUMP coin website GetTrumpMemes.com and the official $TRUMP X account had reposted the announcement, the family’s statements led to suspicion of unauthorized brand use.
The conflicting messages fueled speculation. Some users on X believed the wallet was tied to an upcoming airdrop campaign to expand the $TRUMP user base.
Others suspected the whole thing was a marketing stunt or even a scam. Some accused the Trump family of using their fame to cash in and “dump on retail.”
The fact that the @TrumpWalletApp account was later frozen by X only deepened the concerns. The split between the family and the developers exposed internal disorganization and left investors confused and wary.
ETHICS AND CONFLICTS OF INTEREST MAGNIFIED
The Trump Wallet incident isn’t just a business dispute—it raises serious ethical questions. As President, Trump personally promoted the $TRUMP token through Truth Social and X.
On May 22, he hosted a private dinner with $1 million entry fees for large token holders.
Bloomberg reported that attendees included foreign investors like Justin Sun, a crypto entrepreneur from China. This sparked concerns that foreign influence might be entering U.S. politics through crypto.
Senator Richard Blumenthal launched an ethics investigation into whether Trump had violated conflict-of-interest rules as a public official.
The anonymous nature of crypto only worsens the situation. According to Chainalysis, 19 of the top 25 holders of $TRUMP used foreign exchanges that block U.S. traders, suggesting potential unlawful fund flows.
Trump-linked entities such as Fight Fight Fight LLC held large portions of the token, and insiders profited heavily from transaction fees while most retail investors lost money.
This created an unequal and opaque system, reinforcing the perception that Trump was leveraging public office for personal profit.
LEGAL GREY AREAS AND WEAK REGULATORY FRAMEWORKS
From a legal point of view, the Trump Wallet case exposed key gaps in crypto oversight. Though the $TRUMP website claims the token is “not a security,” its centralized control and profit-driven design might bring it under SEC jurisdiction.
Trump’s administration had pushed for crypto deregulation, including halting the SEC’s lawsuit against Justin Sun. While these moves helped crypto businesses, they also sparked controversy about favoritism.
It’s unclear whether the Trump Wallet followed KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements. Magic Eden used Slingshot Finance to develop the wallet and said identity checks were handled by MoonPay.
However, without clear responsibilities, the wallet could be used for illicit activities.
The Trump family’s public denial may also lead to legal action. Eric Trump said they might sue for unauthorized use of the Trump brand.
This could hurt Magic Eden’s credibility and further weaken investor confidence in the $TRUMP project. The lack of strong regulation could prompt agencies like the SEC to tighten controls over meme coins and related products.
SPECULATION BOOM AND TRUST CRISIS
The Trump Wallet incident reflects the broader meme coin frenzy and the fragile nature of crypto markets. The success of $TRUMP came largely from Trump’s celebrity status and pro-crypto stance.
In May 2025, Bitcoin surged past $110,000, in part due to Trump’s announcement of a national Bitcoin reserve.
But meme coins remain highly volatile. After its peak, $TRUMP dropped sharply, leading to massive losses for many investors. Magic Eden’s own token, ME, jumped 35% after the wallet launch but crashed after the Trump family denied involvement.
This highlights the market’s vulnerability to rumors and uncertainty.
The deeper problem is a crisis of trust. At the 2025 Bitcoin Conference, industry voices like Cake Wallet’s VP Seth for Privacy warned that meme coin collapses might permanently drive away new investors.
The Trump Wallet drama made this worse. While some users were still lured by promised rewards and airdrops, many others became cautious and skeptical, worried about scams.
To regain trust, the Trump family must clarify their role and act against unauthorized projects. But given their complex financial involvement in crypto, that may be difficult.
The outcome of the Trump Wallet will depend on how Magic Eden and the Trump family respond, how regulators intervene, and whether the public continues to support high-risk meme coins.
CONCLUSION
The Trump Wallet incident is more than just a 2025 crypto headline—it’s a complex case about power, profit, and trust.
Trump’s use of his presidential role to push crypto projects created a wave of speculation but also revealed deep issues like manipulation, ethics concerns, and weak regulation.
For investors, the Trump Wallet might look like a golden opportunity—but it’s also a risky gamble. For the crypto industry, it’s a reminder: without better rules, transparency, and responsible leadership, meme coin mania could seriously harm the market’s future.
Only with stronger oversight and smarter investing can crypto move from hype to lasting value.
〈The Trump Wallet Debate: Power, Profits and Crypto Risks〉這篇文章最早發佈於《CoinRank》。
