Melania Trump's Meme Coin Architects Hit with Pump-and-Dump Scam Lawsuit
The developers responsible for a digital token launched by US First Lady Melania Trump are now alleged in federal papers of executing a fraudulent operation.
Initial Launch and Price Surge
The $MELANIA cryptocurrency were released for under a dollar each on January 19, just prior to former President Trump was inaugurated.
Together with the First Lady's token, the former president launched his personal token just ahead of the presidential inauguration.
Within hours, the price of the $MELANIA token skyrocketed to $13.73 per coin.
Sudden Collapse in Price
However, the value then collapsed almost as quickly, and presently trades for approximately a dime – below a fraction of its maximum worth.
Meanwhile, the $TRUMP cryptocurrency reached a peak of $45.47 and presently sells for under six dollars.
Court Claims and Plaintiffs' Position
The investors claim that the coin's creators planned the maneuver aware that the token's worth would decline sharply.
The First Lady herself is not mentioned in the lawsuit. The plaintiffs stated they do not consider she was at fault, but charged the blockchain organizations of exploiting her and other prominent figures as a facade for their fraudulent schemes.
Exchange Platform Involvement
According to recently submitted legal documents, investors allege leaders of the Meteora trading platform, where the First Lady's token was originally listed, of establishing a scheme that enabled them to secretly buy substantial volumes of the cryptocurrency.
Their partners then promptly liquidated these cryptocurrencies, pocketing substantial profits while triggering the value to crash, per records entered in federal court in Manhattan.
Broader Context
The claims concerning the First Lady's coin have been included in legal proceedings concerning multiple additional virtual tokens, which commenced in spring.
The Trump organization has according to reports secured in excess of $1 billion in pre-tax profits from multiple cryptocurrency-related ventures and firms over the past 12 months.
