First Lady's Meme Coin Creators Facing Pump-and-Dump Fraud Lawsuit
The developers behind a cryptocurrency launched by First Lady of the United States Melania Trump are now accused in federal papers of planning a fraudulent operation.
Initial Launch and Value Spike
The $MELANIA cryptocurrency were released for under a dollar each on the 19th of January, just prior to former President Trump assumed the presidency.
Alongside the First Lady's token, the former president launched his personal token shortly prior to the swearing-in event.
Shortly after launch, the value of the $MELANIA token surged to nearly $14 per token.
Rapid Decline in Price
Yet, the market price then collapsed just as rapidly, and is now only about 10 cents â below a fraction of its peak price.
At the same time, the $TRUMP cryptocurrency achieved a maximum of over forty-five dollars and currently exchanges for under six dollars.
Court Claims and Plaintiffs' Position
The investors assert that the currency's developers planned the maneuver aware that the cryptocurrency's price would crash.
The First Lady personally is not mentioned in the lawsuit. Claimants indicated they do not believe she was at fault, but alleged the blockchain organizations of using her and other familiar faces as window dressing for their illegal activities.
Trading Venue Role
According to recently submitted federal filings, investors accuse leaders of the Meteora trading platform, where $MELANIA was initially traded, of establishing a scheme that enabled them to indirectly purchase large quantities of the virtual coin.
Their partners then promptly liquidated these virtual tokens, earning significant gains while causing the price to plummet, as stated in documents filed in Manhattan federal court.
Broader Context
The allegations about the Melania token have been incorporated into legal proceedings regarding multiple additional virtual tokens, which started in spring.
The Trump organization has reportedly earned over $1 billion in pre-tax profits from multiple cryptocurrency-related ventures and firms over the last year.
