Melania Trump's Digital Currency Architects Hit with Pump-and-Dump Scam Lawsuit
The architects responsible for a cryptocurrency introduced by First Lady of the United States Melania Trump are now alleged in court filings of orchestrating a market manipulation plot.
Initial Launch and Value Spike
The $MELANIA cryptocurrency were made available for a minimal price each on the 19th of January, the day before former President Trump was inaugurated.
Together with the $MELANIA coin, the former president released his personal token just ahead of the swearing-in event.
In a matter of hours, the value of the $MELANIA token skyrocketed to over $13 per coin.
Sudden Collapse in Price
Nevertheless, the market price then collapsed with similar speed, and currently stands at less than 15 cents – under a fraction of its peak price.
In parallel, the $TRUMP cryptocurrency achieved a maximum of over forty-five dollars and currently exchanges for under six dollars.
Court Claims and Investors' Arguments
The claimants assert that the coin's creators executed the scheme aware that the token's worth would decline sharply.
The First Lady herself is not mentioned in the court case. Investors indicated they do not consider she was responsible, but accused the blockchain organizations of exploiting her and other prominent figures as a cover for their illegal activities.
Exchange Platform Role
As per fresh legal documents, plaintiffs charge officials of the Meteora cryptocurrency exchange, where Melania's coin was originally listed, of establishing a plan that allowed them to indirectly purchase substantial volumes of the virtual coin.
Associated individuals then quickly resold these cryptocurrencies, earning significant gains while causing the price to plummet, per records entered in federal court in Manhattan.
Wider Proceedings
The claims regarding the First Lady's coin have been incorporated into court cases regarding various other digital currencies, which started in the month of April.
Trump-associated entities has reportedly earned over one billion dollars in pre-tax earnings from various blockchain-associated products and companies over the last year.