First Lady's Digital Currency Creators Hit with Pump-and-Dump Fraud Legal Action
The developers responsible for a cryptocurrency released by US First Lady Melania Trump are now charged in federal papers of planning a market manipulation plot.
Initial Launch and Price Surge
The $MELANIA coins were released for just a few cents each on the 19th of January, the day before former President Trump assumed the presidency.
Alongside the $MELANIA coin, Trump himself released his personal token shortly prior to the swearing-in event.
In a matter of hours, the market value of the $MELANIA cryptocurrency soared to nearly $14 per coin.
Rapid Decline in Price
Yet, the value then collapsed with similar speed, and presently trades for approximately a dime – below a fraction of its highest value.
Meanwhile, the $TRUMP cryptocurrency hit a high of over forty-five dollars and currently exchanges for $5.79.
Legal Allegations and Investors' Arguments
The investors allege that the token's architects executed the maneuver knowing that the cryptocurrency's price would plummet.
Melania Trump personally is not named in the court case. Investors stated they do not think she was culpable, but alleged the digital currency firms of using her and other well-known personalities as a facade for their illegal activities.
Exchange Platform Involvement
In newly filed federal filings, investors charge leaders of the Meteora trading platform, where Melania's coin was initially traded, of establishing a scheme that enabled them to discreetly acquire substantial volumes of the digital token.
Their partners then rapidly offloaded these digital currencies, securing large returns while causing the price to plummet, per documents filed in Manhattan federal court.
Broader Context
The charges regarding the Melania token have been added to legal proceedings concerning multiple additional digital currencies, which started in the month of April.
Trump-associated entities has allegedly earned in excess of one billion dollars in pre-tax profits from multiple cryptocurrency-related enterprises and organizations over the previous twelve months.
