Melania Trump's Digital Currency Architects Facing Pump-and-Dump Fraud Lawsuit
The designers behind a virtual coin released by First Lady of the United States Melania Trump are now accused in legal documents of orchestrating a pump-and-dump scheme.
Initial Launch and Price Surge
The $MELANIA coins were released for a minimal price each on the 19th of January, one day preceding former President Trump was inaugurated.
Alongside the $MELANIA coin, Donald Trump launched his $TRUMP coin a few hours before the inauguration ceremony.
In a matter of hours, the market value of the $MELANIA token surged to over $13 per unit.
Sudden Collapse in Value
Yet, the value subsequently crashed just as rapidly, and presently trades for only about 10 cents – below 1% of its peak price.
At the same time, the $TRUMP cryptocurrency achieved a maximum of over forty-five dollars and presently sells for under six dollars.
Legal Allegations and Investors' Arguments
The investors claim that the token's architects executed the scheme knowing that the digital currency's value would plummet.
Melania Trump personally is not mentioned in the lawsuit. The plaintiffs indicated they do not consider she was at fault, but alleged the digital currency firms of leveraging her and other well-known personalities as a cover for their fraudulent schemes.
Exchange Platform Role
As per fresh legal documents, investors allege executives of the Meteora cryptocurrency exchange, where $MELANIA was initially traded, of establishing a scheme that enabled them to indirectly purchase large quantities of the cryptocurrency.
Associated individuals then quickly resold these virtual tokens, pocketing substantial profits while triggering the price to plummet, as stated in records entered in Manhattan federal court.
Broader Context
The charges about the Melania token have been incorporated into judicial actions regarding multiple additional cryptocurrencies, which began in spring.
Trump-associated entities has according to reports generated over one billion dollars in pre-tax gains from various blockchain-associated products and companies over the past 12 months.
