Melania Trump's Meme Coin Creators Hit with Pump-and-Dump Scam Lawsuit
The architects behind a virtual coin released by First Lady of the United States Melania Trump are now accused in federal papers of planning a market manipulation plot.
Initial Launch and Price Surge
The $MELANIA coins were released for a minimal price each on January 19th, the day before Donald Trump was inaugurated.
Alongside the $MELANIA coin, the former president released his $TRUMP coin shortly prior to the swearing-in event.
Within hours, the market value of the $MELANIA coin skyrocketed to nearly $14 per token.
Rapid Decline in Price
Yet, the market price then collapsed almost as quickly, and presently trades for less than 15 cents â under 1% of its peak price.
At the same time, the $TRUMP cryptocurrency reached a peak of $45.47 and presently sells for under six dollars.
Legal Allegations and Plaintiffs' Position
The investors claim that the currency's developers planned the maneuver conscious that the cryptocurrency's price would decline sharply.
Melania Trump herself is not included in the lawsuit. Investors indicated they do not consider she was culpable, but alleged the blockchain organizations of using her and other well-known personalities as a facade for their illegal activities.
Exchange Platform Involvement
In newly filed federal filings, plaintiffs allege executives of the Meteora digital asset exchange, where Melania's coin was first exchanged, of creating a operation that permitted them to discreetly acquire substantial volumes of the virtual coin.
Their partners then quickly resold these cryptocurrencies, pocketing substantial profits while causing the value to crash, according to papers submitted in Manhattan federal court.
Wider Proceedings
The charges regarding the Melania token have been included in legal proceedings regarding several other digital currencies, which started in the month of April.
Trump-associated entities has reportedly generated in excess of a billion dollars in pre-tax earnings from multiple digital currency-linked products and companies over the past 12 months.
