Melania Trump's Meme Coin Creators Facing Market Manipulation Fraud Lawsuit
The designers responsible for a virtual coin introduced by US First Lady Melania Trump have been alleged in legal documents of executing a market manipulation plot.
Initial Launch and Value Spike
The $MELANIA coins were issued for under a dollar each on the 19th of January, just prior to former President Trump was inaugurated.
In addition to the Melania cryptocurrency, Donald Trump launched his $TRUMP coin just ahead of the presidential inauguration.
In a matter of hours, the price of the $MELANIA coin soared to nearly $14 per token.
Sudden Collapse in Value
Yet, the price subsequently crashed with similar speed, and currently stands at less than 15 cents – under one percent of its highest value.
Meanwhile, the $TRUMP token achieved a maximum of nearly forty-six dollars and presently sells for $5.79.
Legal Allegations and Plaintiffs' Position
The plaintiffs allege that the token's architects organized the operation conscious that the cryptocurrency's price would crash.
Melania Trump personally is not mentioned in the court case. The plaintiffs clarified they do not believe she was culpable, but alleged the crypto companies of using her and other familiar faces as window dressing for their illegal activities.
Trading Venue Role
In newly filed legal documents, plaintiffs accuse executives of the Meteora cryptocurrency exchange, where the First Lady's token was first exchanged, of setting up a operation that enabled them to indirectly purchase substantial volumes of the cryptocurrency.
Their partners then rapidly offloaded these cryptocurrencies, securing large returns while leading to the price to plummet, according to documents filed in federal court in Manhattan.
Wider Proceedings
The charges concerning the Melania token have been incorporated into legal proceedings involving several other virtual tokens, which started in the month of April.
Trump-associated entities has reportedly secured more than one billion dollars in pre-tax profits from several cryptocurrency-related ventures and firms over the previous twelve months.
