First Lady's Meme Coin Architects Hit with Pump-and-Dump Scam Lawsuit

The architects responsible for a virtual coin introduced by First Lady of the United States Melania Trump are now accused in federal papers of executing a market manipulation plot.

Coin Release and Value Spike

The $MELANIA tokens were released for a minimal price each on January 19th, the day before Donald Trump took office.

Together with the First Lady's token, Donald Trump released his personal token shortly prior to the inauguration ceremony.

Shortly after launch, the value of the $MELANIA cryptocurrency skyrocketed to over $13 per token.

Sudden Collapse in Value

Nevertheless, the value subsequently crashed almost as quickly, and is now only about 10 cents – under 1% of its peak price.

At the same time, the $TRUMP cryptocurrency reached a peak of $45.47 and currently exchanges for under six dollars.

Legal Allegations and Plaintiffs' Position

The plaintiffs allege that the currency's developers planned the maneuver knowing that the cryptocurrency's price would plummet.

Mrs. Trump herself is not included in the lawsuit. Investors stated they do not believe she was at fault, but charged the blockchain organizations of leveraging her and other prominent figures as window dressing for their illegal activities.

Exchange Platform Role

According to recently submitted legal documents, plaintiffs charge officials of the Meteora digital asset exchange, where $MELANIA was originally listed, of setting up a plan that permitted them to indirectly purchase significant amounts of the digital token.

Associated individuals then quickly resold these cryptocurrencies, pocketing substantial profits while triggering the price to plummet, per records entered in federal court in Manhattan.

Broader Context

The allegations concerning the Melania token have been added to legal proceedings concerning multiple additional virtual tokens, which began in spring.

Trump-associated entities has reportedly earned in excess of $1 billion in pre-tax gains from various blockchain-associated enterprises and organizations over the past 12 months.