Melania Trump's Digital Currency Creators Facing Pump-and-Dump Scam Legal Action
The designers behind a virtual coin introduced by US First Lady Melania Trump are now alleged in court filings of orchestrating a pump-and-dump scheme.
Coin Release and Value Spike
The $MELANIA tokens were made available for just a few cents each on the 19th of January, the day before Donald Trump was inaugurated.
Alongside the First Lady's token, Trump himself released his own digital currency just ahead of the inauguration ceremony.
In a matter of hours, the value of the $MELANIA token skyrocketed to over $13 per token.
Rapid Decline in Value
Nevertheless, the price subsequently crashed just as rapidly, and currently stands at approximately a dime – below a fraction of its peak price.
Meanwhile, the $TRUMP coin achieved a maximum of nearly forty-six dollars and currently exchanges for $5.79.
Court Claims and Investors' Arguments
The plaintiffs claim that the coin's creators planned the maneuver aware that the cryptocurrency's price would plummet.
Melania Trump personally is not mentioned in the lawsuit. The plaintiffs indicated they do not believe she was responsible, but charged the blockchain organizations of exploiting her and other prominent figures as a cover for their illegal activities.
Trading Venue Involvement
In newly filed federal filings, plaintiffs allege officials of the Meteora trading platform, where Melania's coin was originally listed, of setting up a scheme that permitted them to discreetly acquire substantial volumes of the cryptocurrency.
Their accomplices then quickly resold these digital currencies, securing large returns while leading to the price to plummet, as stated in records entered in Manhattan federal court.
Broader Context
The charges about the First Lady's coin have been included in court cases concerning various other digital currencies, which commenced in the month of April.
Trump-associated entities has reportedly earned over $1 billion in pre-tax profits from several cryptocurrency-related ventures and firms over the previous twelve months.
