🔗 Share this article

The architects behind a virtual coin launched by First Lady of the United States Melania Trump have been accused in court filings of orchestrating a pump-and-dump scheme.

Coin Release and Price Surge

The $MELANIA tokens were released for under a dollar each on January 19, just prior to former President Trump assumed the presidency.

In addition to the $MELANIA coin, Donald Trump released his own digital currency a few hours before the swearing-in event.

Shortly after launch, the value of the $MELANIA coin surged to over $13 per token.

Rapid Decline in Value

However, the value subsequently crashed with similar speed, and is now less than 15 cents – below a fraction of its peak price.

At the same time, the $TRUMP token reached a peak of over forty-five dollars and now trades for $5.79.

Legal Allegations and Plaintiffs' Position

The claimants allege that the token's architects planned the scheme knowing that the digital currency's value would crash.

Mrs. Trump personally is not mentioned in the legal action. The plaintiffs indicated they do not believe she was culpable, but charged the digital currency firms of leveraging her and other prominent figures as a cover for their fraudulent schemes.

Trading Venue Role

As per fresh federal filings, plaintiffs allege leaders of the Meteora digital asset exchange, where $MELANIA was initially traded, of setting up a operation that allowed them to indirectly purchase significant amounts of the cryptocurrency.

Their accomplices then promptly liquidated these virtual tokens, earning significant gains while causing the value to crash, as stated in records entered in Manhattan federal court.

Wider Proceedings

The charges regarding the Melania token have been added to legal proceedings concerning several other digital currencies, which commenced in the month of April.

The Trump family has according to reports earned over $1 billion in pre-tax gains from various digital currency-linked ventures and firms over the last year.