Melania Trump's Meme Coin Creators Hit with Pump-and-Dump Fraud Lawsuit
The architects behind a digital token launched by First Lady of the United States Melania Trump have been accused in legal documents of orchestrating a fraudulent operation.
Initial Launch and Value Spike
The $MELANIA cryptocurrency were issued for a minimal price each on January 19, just prior to former President Trump took office.
Alongside the Melania cryptocurrency, Donald Trump introduced his $TRUMP coin shortly prior to the swearing-in event.
Within hours, the price of the $MELANIA cryptocurrency skyrocketed to $13.73 per coin.
Rapid Decline in Value
Yet, the market price subsequently crashed almost as quickly, and currently stands at less than 15 cents – less than one percent of its peak price.
At the same time, the $TRUMP coin reached a peak of nearly forty-six dollars and presently sells for under six dollars.
Court Claims and Plaintiffs' Position
The plaintiffs assert that the token's architects organized the operation aware that the token's worth would plummet.
Melania Trump herself is not included in the lawsuit. Investors clarified they do not think she was responsible, but charged the digital currency firms of leveraging her and other well-known personalities as a facade for their illegal activities.
Trading Venue Role
According to recently submitted court papers, investors allege executives of the Meteora digital asset exchange, where the First Lady's token was originally listed, of establishing a operation that permitted them to secretly buy substantial volumes of the cryptocurrency.
Their partners then promptly liquidated these virtual tokens, securing large returns while triggering the value to crash, as stated in documents filed in New York federal court.
Broader Context
The claims about the First Lady's coin have been incorporated into legal proceedings concerning several other digital currencies, which commenced in the month of April.
The Trump organization has reportedly secured in excess of a billion dollars in pre-tax profits from several blockchain-associated products and companies over the last year.
