First Lady's Meme Coin Creators Facing Pump-and-Dump Fraud Legal Action
The developers behind a cryptocurrency launched by First Lady of the United States Melania Trump are now alleged in federal papers of planning a pump-and-dump scheme.
Initial Launch and Value Spike
The $MELANIA tokens were released for a minimal price each on January 19, just prior to former President Trump was inaugurated.
Together with the Melania cryptocurrency, Donald Trump introduced his own digital currency just ahead of the swearing-in event.
Within hours, the market value of the $MELANIA token surged to nearly $14 per unit.
Sudden Collapse in Value
Nevertheless, the value plummeted with similar speed, and presently trades for only about 10 cents – below one percent of its peak price.
At the same time, the $TRUMP token hit a high of nearly forty-six dollars and now trades for approximately five seventy-nine.
Court Claims and Plaintiffs' Position
The claimants allege that the token's architects organized the maneuver aware that the digital currency's value would crash.
The First Lady personally is not mentioned in the lawsuit. The plaintiffs clarified they do not think she was responsible, but accused the digital currency firms of exploiting her and other familiar faces as a cover for their illegal activities.
Trading Venue Role
As per fresh federal filings, investors charge executives of the Meteora cryptocurrency exchange, where Melania's coin was originally listed, of setting up a operation that allowed them to indirectly purchase large quantities of the digital token.
Their partners then rapidly offloaded these cryptocurrencies, pocketing substantial profits while causing the price to plummet, as stated in records entered in New York federal court.
Broader Context
The claims concerning the First Lady's coin have been added to judicial actions involving various other digital currencies, which commenced in April.
The Trump family has allegedly secured more than one billion dollars in pre-tax profits from several cryptocurrency-related enterprises and organizations over the past 12 months.
