Melania Trump's Digital Currency Architects Facing Pump-and-Dump Scam Lawsuit
The developers behind a cryptocurrency introduced by US First Lady Melania Trump are now charged in court filings of orchestrating a fraudulent operation.
Coin Release and Value Spike
The $MELANIA coins were made available for under a dollar each on the 19th of January, the day before former President Trump assumed the presidency.
Alongside the Melania cryptocurrency, Trump himself introduced his personal token shortly prior to the presidential inauguration.
Shortly after launch, the value of the $MELANIA cryptocurrency surged to over $13 per coin.
Rapid Decline in Value
However, the market price plummeted almost as quickly, and is now approximately a dime – below 1% of its highest value.
In parallel, the $TRUMP coin reached a peak of nearly forty-six dollars and now trades for under six dollars.
Legal Allegations and Investors' Arguments
The investors assert that the coin's creators planned the maneuver aware that the token's worth would crash.
The First Lady herself is not included in the legal action. Investors stated they do not think she was at fault, but charged the blockchain organizations of using her and other well-known personalities as a cover for their criminal operations.
Trading Venue Involvement
According to recently submitted federal filings, investors accuse leaders of the Meteora cryptocurrency exchange, where Melania's coin was originally listed, of setting up a plan that allowed them to discreetly acquire significant amounts of the digital token.
Their partners then quickly resold these virtual tokens, securing large returns while causing the price to plummet, according to documents filed in federal court in Manhattan.
Wider Proceedings
The allegations about the Melania token have been included in legal proceedings regarding various other digital currencies, which started in the month of April.
The Trump family has allegedly generated more than one billion dollars in pre-tax profits from several cryptocurrency-related enterprises and organizations over the past 12 months.
