First Lady's Meme Coin Creators Facing Market Manipulation Scam Lawsuit
The designers responsible for a virtual coin launched by US First Lady Melania Trump are now charged in federal papers of planning a market manipulation plot.
Initial Launch and Value Spike
The $MELANIA cryptocurrency were released for a minimal price each on January 19th, the day before Donald Trump was inaugurated.
In addition to the Melania cryptocurrency, Trump himself launched his own digital currency shortly prior to the presidential inauguration.
Shortly after launch, the price of the $MELANIA cryptocurrency skyrocketed to $13.73 per unit.
Rapid Decline in Price
Yet, the price plummeted just as rapidly, and currently stands at only about 10 cents – under a fraction of its highest value.
In parallel, the $TRUMP coin reached a peak of over forty-five dollars and presently sells for approximately five seventy-nine.
Court Claims and Plaintiffs' Position
The investors allege that the coin's creators organized the maneuver knowing that the cryptocurrency's price would plummet.
Melania Trump personally is not mentioned in the lawsuit. Investors indicated they do not think she was at fault, but charged the digital currency firms of leveraging her and other familiar faces as window dressing for their fraudulent schemes.
Trading Venue Involvement
In newly filed federal filings, plaintiffs charge executives of the Meteora cryptocurrency exchange, where $MELANIA was first exchanged, of establishing a scheme that enabled them to secretly buy substantial volumes of the virtual coin.
Associated individuals then rapidly offloaded these cryptocurrencies, securing large returns while triggering the market to collapse, per documents filed in New York federal court.
Wider Proceedings
The allegations about the Melania token have been incorporated into court cases involving multiple additional cryptocurrencies, which commenced in April.
The Trump family has reportedly earned in excess of one billion dollars in pre-tax gains from several cryptocurrency-related enterprises and organizations over the last year.
