Melania Trump's Digital Currency Architects Hit with Pump-and-Dump Scam Lawsuit
The developers behind a virtual coin launched by US First Lady Melania Trump are now accused in legal documents of executing a fraudulent operation.
Coin Release and Price Surge
The $MELANIA cryptocurrency were released for a minimal price each on the 19th of January, the day before Donald Trump was inaugurated.
In addition to the $MELANIA coin, the former president introduced his own digital currency shortly prior to the presidential inauguration.
In a matter of hours, the market value of the $MELANIA token skyrocketed to $13.73 per coin.
Rapid Decline in Value
However, the price plummeted just as rapidly, and presently trades for less than 15 cents – less than a fraction of its maximum worth.
In parallel, the $TRUMP coin reached a peak of nearly forty-six dollars and currently exchanges for under six dollars.
Legal Allegations and Plaintiffs' Position
The claimants claim that the coin's creators planned the maneuver aware that the token's worth would crash.
Melania Trump herself is not mentioned in the legal action. Investors indicated they do not believe she was culpable, but charged the digital currency firms of leveraging her and other prominent figures as window dressing for their illegal activities.
Exchange Platform Role
According to recently submitted legal documents, claimants accuse officials of the Meteora cryptocurrency exchange, where the First Lady's token was initially traded, of creating a plan that allowed them to discreetly acquire significant amounts of the virtual coin.
Their partners then promptly liquidated these digital currencies, pocketing substantial profits while causing the price to plummet, as stated in records entered in Manhattan federal court.
Wider Proceedings
The charges about the First Lady's coin have been added to court cases concerning several other digital currencies, which began in the month of April.
The Trump family has allegedly secured more than $1 billion in pre-tax profits from multiple blockchain-associated enterprises and organizations over the last year.
