U.S. President Donald Trump’s use of the Presidential Seal at an event where he spoke to major holders of the TRUMP memecoin may have violated federal law, a Forbes report has asserted. According to the report, the use of a lectern adorned with the Presidential Seal at the private function held at Trump National Golf Club on May 22 may have conveyed “a false impression of sponsorship or approval by the government,” an act prohibited by law.

According to 18 U.S.C. § 713 – U.S. Code, persons who knowingly use the seal or likeness in a way that portrays approval by the U.S. government “shall be fined under this title or imprisoned for not more than six months, or both.”

In the days leading up to the dinner, the Trump administration sought to allay fears that foreigners, including adversaries of the United States, might use ownership of TRUMP memecoins to gain access to or influence over the U.S. President. White House spokesperson Karoline Leavitt told reporters hours before the function that the event was private and that Trump would be attending “in his personal time.”

According to a New York Times report, 220 top holders of the TRUMP memecoin attended the dinner, during which the Presidential Seal was illegally used. Among the attendees were Justin Sun, the founder of TRON; Wintermute founder Evgeny Gaevoy; and Anil Lulla and Yan Liberman, two co-founders of Delphi Digital, who were notable crypto entrepreneurs in attendance.

The TRUMP memecoin has been dogged by controversy since its launch just hours before Trump’s second inauguration. Soon after hitting a high of just below $75 at launch, the memecoin’s value plunged, leaving many investors in the red. Some critics and organizations have accused Trump of personally profiting from the sale of the memecoin, an allegation he has denied.

However, despite the controversy, Trump continues to be viewed favorably by the U.S. crypto industry, which struggled under the Biden administration. Speaking at the TRUMP dinner function, the U.S. president reiterated his administration’s determination to improve conditions for crypto firms.

“The past administration made your lives miserable; we’re honored to be working on helping everybody here,” Trump was quoted as saying.

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