Melania Trump's Digital Currency Architects Hit with Pump-and-Dump Scam Legal Action
The developers behind a cryptocurrency released by US First Lady Melania Trump have been alleged in court filings of executing a pump-and-dump scheme.
Coin Release and Value Spike
The $MELANIA coins were issued for under a dollar each on January 19, the day before former President Trump was inaugurated.
Alongside the Melania cryptocurrency, the former president launched his personal token a few hours before the presidential inauguration.
In a matter of hours, the value of the $MELANIA token soared to nearly $14 per coin.
Sudden Collapse in Price
However, the market price subsequently crashed just as rapidly, and is now only about 10 cents – under 1% of its maximum worth.
Meanwhile, the $TRUMP cryptocurrency hit a high of $45.47 and presently sells for under six dollars.
Court Claims and Investors' Arguments
The plaintiffs claim that the currency's developers organized the scheme conscious that the cryptocurrency's price would decline sharply.
The First Lady herself is not mentioned in the court case. Investors indicated they do not think she was culpable, but accused the blockchain organizations of exploiting her and other familiar faces as a facade for their illegal activities.
Trading Venue Role
As per fresh court papers, claimants accuse executives of the Meteora digital asset exchange, where $MELANIA was initially traded, of creating a plan that enabled them to indirectly purchase substantial volumes of the virtual coin.
Associated individuals then promptly liquidated these cryptocurrencies, earning significant gains while triggering the price to plummet, according to records entered in New York federal court.
Wider Proceedings
The charges regarding $MELANIA have been included in court cases concerning several other virtual tokens, which commenced in spring.
The Trump organization has allegedly secured more than $1 billion in pre-tax gains from several blockchain-associated products and companies over the past 12 months.
