First Lady's Digital Currency Architects Facing Pump-and-Dump Scam Legal Action
The architects responsible for a virtual coin introduced by US First Lady Melania Trump have been accused in legal documents of executing a market manipulation plot.
Initial Launch and Price Surge
The $MELANIA tokens were released for a minimal price each on January 19, the day before former President Trump was inaugurated.
In addition to the $MELANIA coin, the former president launched his personal token just ahead of the presidential inauguration.
Within hours, the price of the $MELANIA cryptocurrency skyrocketed to over $13 per unit.
Sudden Collapse in Price
Nevertheless, the value then collapsed with similar speed, and is now less than 15 cents – less than 1% of its highest value.
In parallel, the $TRUMP coin achieved a maximum of over forty-five dollars and presently sells for under six dollars.
Legal Allegations and Investors' Arguments
The claimants claim that the coin's creators planned the scheme conscious that the token's worth would plummet.
Melania Trump herself is not included in the court case. Investors clarified they do not consider she was at fault, but charged the crypto companies of using her and other well-known personalities as a facade for their illegal activities.
Exchange Platform Role
In newly filed legal documents, claimants accuse executives of the Meteora cryptocurrency exchange, where Melania's coin was initially traded, of creating a plan that enabled them to secretly buy significant amounts of the virtual coin.
Associated individuals then quickly resold these digital currencies, pocketing substantial profits while causing the value to crash, as stated in records entered in Manhattan federal court.
Wider Proceedings
The allegations regarding the Melania token have been included in legal proceedings regarding various other cryptocurrencies, which started in the month of April.
The Trump organization has reportedly earned more than one billion dollars in pre-tax profits from several digital currency-linked enterprises and organizations over the last year.