Melania Trump's Meme Coin Creators Facing Market Manipulation Scam Legal Action
The developers behind a virtual coin introduced by First Lady of the United States Melania Trump have been alleged in federal papers of planning a market manipulation plot.
Initial Launch and Value Spike
The $MELANIA coins were made available for under a dollar each on January 19th, one day preceding former President Trump was inaugurated.
Alongside the $MELANIA coin, Donald Trump released his own digital currency shortly prior to the inauguration ceremony.
Within hours, the price of the $MELANIA token surged to nearly $14 per coin.
Rapid Decline in Price
Yet, the market price subsequently crashed almost as quickly, and currently stands at approximately a dime – less than 1% of its maximum worth.
In parallel, the $TRUMP coin achieved a maximum of nearly forty-six dollars and presently sells for $5.79.
Legal Allegations and Plaintiffs' Position
The claimants allege that the currency's developers planned the scheme knowing that the cryptocurrency's price would decline sharply.
Melania Trump herself is not mentioned in the legal action. The plaintiffs clarified they do not think she was culpable, but charged the blockchain organizations of using her and other prominent figures as a cover for their fraudulent schemes.
Exchange Platform Involvement
In newly filed federal filings, plaintiffs charge executives of the Meteora cryptocurrency exchange, where Melania's coin was first exchanged, of creating a operation that enabled them to secretly buy substantial volumes of the virtual coin.
Their accomplices then quickly resold these digital currencies, earning significant gains while causing the market to collapse, per records entered in federal court in Manhattan.
Wider Proceedings
The claims concerning the First Lady's coin have been added to legal proceedings regarding multiple additional cryptocurrencies, which started in April.
Trump-associated entities has allegedly earned in excess of a billion dollars in pre-tax gains from several blockchain-associated enterprises and organizations over the last year.
