Melania Trump's Meme Coin Architects Hit with Pump-and-Dump Scam Lawsuit
The designers behind a virtual coin launched by US First Lady Melania Trump are now charged in court filings of executing a market manipulation plot.
Coin Release and Value Spike
The $MELANIA coins were made available for just a few cents each on the 19th of January, just prior to former President Trump took office.
Alongside the $MELANIA coin, Donald Trump introduced his own digital currency shortly prior to the inauguration ceremony.
Within hours, the value of the $MELANIA coin soared to over $13 per unit.
Rapid Decline in Price
Yet, the market price subsequently crashed just as rapidly, and is now less than 15 cents – less than 1% of its highest value.
Meanwhile, the $TRUMP cryptocurrency hit a high of nearly forty-six dollars and now trades for under six dollars.
Legal Allegations and Investors' Arguments
The plaintiffs assert that the coin's creators executed the scheme aware that the cryptocurrency's price would plummet.
Melania Trump personally is not included in the legal action. Investors clarified they do not believe she was at fault, but charged the blockchain organizations of leveraging her and other well-known personalities as a cover for their criminal operations.
Trading Venue Role
According to recently submitted court papers, investors charge executives of the Meteora digital asset exchange, where Melania's coin was initially traded, of setting up a operation that allowed them to indirectly purchase substantial volumes of the virtual coin.
Their partners then quickly resold these cryptocurrencies, pocketing substantial profits while causing the price to plummet, according to documents filed in Manhattan federal court.
Broader Context
The claims regarding the Melania token have been incorporated into judicial actions involving multiple additional virtual tokens, which began in the month of April.
The Trump family has according to reports generated more than one billion dollars in pre-tax gains from multiple cryptocurrency-related products and companies over the past 12 months.
