First Lady's Meme Coin Architects Facing Market Manipulation Scam Legal Action
The developers responsible for a digital token introduced by US First Lady Melania Trump have been accused in legal documents of orchestrating a fraudulent operation.
Initial Launch and Value Spike
The $MELANIA coins were made available for under a dollar each on January 19th, the day before Donald Trump was inaugurated.
Together with the Melania cryptocurrency, the former president introduced his $TRUMP coin shortly prior to the presidential inauguration.
Shortly after launch, the market value of the $MELANIA coin soared to nearly $14 per unit.
Sudden Collapse in Price
However, the market price subsequently crashed almost as quickly, and currently stands at approximately a dime – below a fraction of its peak price.
In parallel, the $TRUMP token hit a high of $45.47 and currently exchanges for under six dollars.
Court Claims and Investors' Arguments
The claimants allege that the token's architects planned the scheme knowing that the token's worth would decline sharply.
Melania Trump personally is not named in the lawsuit. Claimants clarified they do not think she was responsible, but accused the digital currency firms of leveraging her and other prominent figures as a cover for their illegal activities.
Trading Venue Involvement
According to recently submitted court papers, plaintiffs accuse executives of the Meteora digital asset exchange, where Melania's coin was initially traded, of creating a scheme that allowed them to discreetly acquire substantial volumes of the digital token.
Their partners then rapidly offloaded these digital currencies, pocketing substantial profits while leading to the market to collapse, according to papers submitted in federal court in Manhattan.
Broader Context
The charges about the First Lady's coin have been added to legal proceedings concerning several other digital currencies, which began in April.
The Trump organization has according to reports generated over $1 billion in pre-tax gains from several blockchain-associated products and companies over the past 12 months.
