🔗 Share this article

The developers behind a cryptocurrency launched by First Lady of the United States Melania Trump have been accused in legal documents of orchestrating a pump-and-dump scheme.

Initial Launch and Price Surge

The $MELANIA tokens were issued for a minimal price each on January 19th, the day before former President Trump took office.

Alongside the Melania cryptocurrency, Trump himself released his $TRUMP coin shortly prior to the swearing-in event.

In a matter of hours, the price of the $MELANIA token skyrocketed to $13.73 per token.

Rapid Decline in Price

Nevertheless, the value then collapsed with similar speed, and presently trades for approximately a dime – below one percent of its peak price.

Meanwhile, the $TRUMP cryptocurrency reached a peak of $45.47 and currently exchanges for $5.79.

Legal Allegations and Plaintiffs' Position

The investors claim that the coin's creators executed the maneuver conscious that the cryptocurrency's price would crash.

The First Lady personally is not mentioned in the legal action. The plaintiffs stated they do not think she was at fault, but accused the blockchain organizations of leveraging her and other prominent figures as a facade for their criminal operations.

Exchange Platform Involvement

In newly filed legal documents, plaintiffs accuse officials of the Meteora trading platform, where $MELANIA was first exchanged, of setting up a operation that enabled them to discreetly acquire large quantities of the virtual coin.

Their partners then quickly resold these cryptocurrencies, pocketing substantial profits while causing the market to collapse, according to documents filed in Manhattan federal court.

Broader Context

The allegations concerning $MELANIA have been included in judicial actions involving various other digital currencies, which commenced in spring.

The Trump organization has according to reports secured over a billion dollars in pre-tax gains from several digital currency-linked enterprises and organizations over the last year.