First Lady's Digital Currency Creators Hit with Market Manipulation Fraud Legal Action
The architects behind a cryptocurrency introduced by First Lady of the United States Melania Trump are now charged in court filings of executing a pump-and-dump scheme.
Coin Release and Value Spike
The $MELANIA tokens were released for a minimal price each on January 19, one day preceding Donald Trump took office.
Alongside the Melania cryptocurrency, Trump himself introduced his own digital currency a few hours before the inauguration ceremony.
Shortly after launch, the value of the $MELANIA coin skyrocketed to nearly $14 per coin.
Sudden Collapse in Value
However, the price then collapsed almost as quickly, and presently trades for approximately a dime – below one percent of its highest value.
At the same time, the $TRUMP token reached a peak of over forty-five dollars and currently exchanges for approximately five seventy-nine.
Legal Allegations and Investors' Arguments
The plaintiffs allege that the coin's creators planned the scheme conscious that the digital currency's value would plummet.
Mrs. Trump personally is not mentioned in the court case. Investors clarified they do not believe she was responsible, but accused the crypto companies of exploiting her and other well-known personalities as window dressing for their criminal operations.
Trading Venue Involvement
In newly filed federal filings, investors charge leaders of the Meteora trading platform, where $MELANIA was first exchanged, of setting up a plan that enabled them to discreetly acquire large quantities of the digital token.
Their partners then rapidly offloaded these digital currencies, pocketing substantial profits while causing the market to collapse, according to papers submitted in New York federal court.
Wider Proceedings
The charges regarding the Melania token have been incorporated into legal proceedings concerning various other cryptocurrencies, which commenced in April.
Trump-associated entities has reportedly secured more than one billion dollars in pre-tax profits from multiple blockchain-associated ventures and firms over the past 12 months.
