First Lady's Meme Coin Creators Facing Market Manipulation Fraud Lawsuit
The architects behind a virtual coin launched by US First Lady Melania Trump are now alleged in federal papers of planning a pump-and-dump scheme.
Initial Launch and Price Surge
The $MELANIA coins were released for just a few cents each on the 19th of January, just prior to former President Trump assumed the presidency.
In addition to the $MELANIA coin, Trump himself released his $TRUMP coin just ahead of the presidential inauguration.
Within hours, the value of the $MELANIA coin surged to over $13 per coin.
Sudden Collapse in Price
Yet, the value then collapsed with similar speed, and currently stands at only about 10 cents – under one percent of its peak price.
At the same time, the $TRUMP cryptocurrency hit a high of over forty-five dollars and presently sells for $5.79.
Court Claims and Investors' Arguments
The investors allege that the currency's developers planned the scheme aware that the cryptocurrency's price would plummet.
Melania Trump personally is not included in the court case. Investors indicated they do not believe she was responsible, but alleged the digital currency firms of exploiting her and other familiar faces as window dressing for their fraudulent schemes.
Exchange Platform Involvement
According to recently submitted federal filings, investors allege executives of the Meteora cryptocurrency exchange, where $MELANIA was first exchanged, of establishing a operation that enabled them to indirectly purchase substantial volumes of the virtual coin.
Associated individuals then promptly liquidated these cryptocurrencies, earning significant gains while causing the market to collapse, according to documents filed in New York federal court.
Broader Context
The charges regarding the First Lady's coin have been included in court cases regarding various other digital currencies, which began in April.
The Trump family has according to reports secured in excess of $1 billion in pre-tax gains from several blockchain-associated ventures and firms over the previous twelve months.
