First Lady's Meme Coin Architects Hit with Market Manipulation Fraud Lawsuit
The designers behind a cryptocurrency released by US First Lady Melania Trump have been accused in court filings of planning a market manipulation plot.
Initial Launch and Value Spike
The $MELANIA coins were made available for under a dollar each on the 19th of January, the day before Donald Trump assumed the presidency.
Together with the Melania cryptocurrency, Donald Trump introduced his $TRUMP coin shortly prior to the presidential inauguration.
Within hours, the market value of the $MELANIA cryptocurrency soared to nearly $14 per token.
Rapid Decline in Price
Yet, the market price then collapsed almost as quickly, and currently stands at less than 15 cents – under one percent of its highest value.
At the same time, the $TRUMP coin reached a peak of $45.47 and now trades for under six dollars.
Court Claims and Investors' Arguments
The investors claim that the currency's developers planned the scheme knowing that the token's worth would plummet.
Mrs. Trump personally is not mentioned in the court case. Investors stated they do not consider she was culpable, but accused the crypto companies of exploiting her and other well-known personalities as a cover for their fraudulent schemes.
Trading Venue Involvement
As per fresh federal filings, plaintiffs accuse leaders of the Meteora cryptocurrency exchange, where the First Lady's token was initially traded, of creating a scheme that enabled them to indirectly purchase substantial volumes of the cryptocurrency.
Their accomplices then promptly liquidated these virtual tokens, earning significant gains while triggering the market to collapse, according to papers submitted in federal court in Manhattan.
Broader Context
The charges concerning the Melania token have been included in legal proceedings involving various other cryptocurrencies, which commenced in April.
Trump-associated entities has allegedly secured in excess of $1 billion in pre-tax earnings from several blockchain-associated products and companies over the previous twelve months.