Melania Trump's Meme Coin Architects Facing Pump-and-Dump Scam Lawsuit
The architects responsible for a digital token launched by First Lady of the United States Melania Trump are now charged in federal papers of orchestrating a market manipulation plot.
Coin Release and Value Spike
The $MELANIA cryptocurrency were made available for under a dollar each on January 19th, just prior to Donald Trump was inaugurated.
Together with the First Lady's token, Trump himself launched his $TRUMP coin a few hours before the presidential inauguration.
Within hours, the value of the $MELANIA coin skyrocketed to $13.73 per token.
Rapid Decline in Price
However, the market price plummeted with similar speed, and is now approximately a dime – below 1% of its peak price.
At the same time, the $TRUMP cryptocurrency achieved a maximum of nearly forty-six dollars and presently sells for under six dollars.
Court Claims and Investors' Arguments
The plaintiffs assert that the token's architects planned the operation aware that the digital currency's value would plummet.
Mrs. Trump personally is not named in the legal action. Investors stated they do not believe she was at fault, but accused the crypto companies of leveraging her and other prominent figures as a facade for their fraudulent schemes.
Exchange Platform Involvement
In newly filed legal documents, claimants allege executives of the Meteora digital asset exchange, where $MELANIA was initially traded, of establishing a plan that allowed them to indirectly purchase significant amounts of the cryptocurrency.
Their accomplices then rapidly offloaded these virtual tokens, pocketing substantial profits while leading to the price to plummet, per documents filed in federal court in Manhattan.
Wider Proceedings
The allegations concerning $MELANIA have been included in judicial actions regarding several other digital currencies, which commenced in the month of April.
The Trump family has allegedly secured over one billion dollars in pre-tax profits from several digital currency-linked enterprises and organizations over the past 12 months.
