Melania Trump's Digital Currency Creators Hit with Pump-and-Dump Fraud Legal Action

The architects behind a cryptocurrency released by US First Lady Melania Trump are now charged in court filings of orchestrating a market manipulation plot.

Coin Release and Value Spike

The $MELANIA cryptocurrency were issued for under a dollar each on the 19th of January, just prior to former President Trump was inaugurated.

In addition to the $MELANIA coin, Donald Trump launched his personal token shortly prior to the swearing-in event.

In a matter of hours, the price of the $MELANIA token skyrocketed to $13.73 per unit.

Sudden Collapse in Price

However, the market price subsequently crashed just as rapidly, and presently trades for only about 10 cents – below a fraction of its peak price.

In parallel, the $TRUMP cryptocurrency hit a high of $45.47 and presently sells for $5.79.

Legal Allegations and Investors' Arguments

The investors claim that the token's architects organized the scheme aware that the token's worth would crash.

Melania Trump personally is not named in the lawsuit. Investors clarified they do not believe she was culpable, but charged the digital currency firms of leveraging her and other prominent figures as window dressing for their fraudulent schemes.

Trading Venue Involvement

In newly filed federal filings, investors allege executives of the Meteora cryptocurrency exchange, where the First Lady's token was initially traded, of creating a plan that enabled them to discreetly acquire significant amounts of the cryptocurrency.

Their accomplices then quickly resold these cryptocurrencies, pocketing substantial profits while leading to the price to plummet, according to records entered in New York federal court.

Broader Context

The claims regarding $MELANIA have been added to court cases regarding several other digital currencies, which started in the month of April.

Trump-associated entities has according to reports secured more than one billion dollars in pre-tax gains from several cryptocurrency-related products and companies over the previous twelve months.