First Lady's Meme Coin Creators Facing Pump-and-Dump Scam Lawsuit
The designers responsible for a digital token released by US First Lady Melania Trump have been accused in federal papers of executing a fraudulent operation.
Initial Launch and Value Spike
The $MELANIA cryptocurrency were issued for just a few cents each on January 19th, just prior to Donald Trump took office.
Alongside the $MELANIA coin, Trump himself launched his own digital currency a few hours before the presidential inauguration.
Shortly after launch, the market value of the $MELANIA token skyrocketed to $13.73 per coin.
Rapid Decline in Price
Nevertheless, the value subsequently crashed almost as quickly, and currently stands at only about 10 cents – below one percent of its maximum worth.
Meanwhile, the $TRUMP token achieved a maximum of $45.47 and currently exchanges for under six dollars.
Court Claims and Plaintiffs' Position
The claimants assert that the token's architects planned the maneuver conscious that the digital currency's value would plummet.
Mrs. Trump herself is not named in the legal action. Investors clarified they do not think she was culpable, but alleged the digital currency firms of exploiting her and other prominent figures as a cover for their fraudulent schemes.
Trading Venue Role
According to recently submitted legal documents, investors allege officials of the Meteora trading platform, where Melania's coin was initially traded, of creating a plan that allowed them to discreetly acquire substantial volumes of the virtual coin.
Their partners then promptly liquidated these digital currencies, securing large returns while leading to the market to collapse, per papers submitted in New York federal court.
Broader Context
The claims about $MELANIA have been included in judicial actions regarding various other virtual tokens, which commenced in April.
Trump-associated entities has reportedly earned in excess of a billion dollars in pre-tax profits from various blockchain-associated ventures and firms over the last year.
