First Lady's Digital Currency Creators Facing Market Manipulation Scam Lawsuit
The architects behind a digital token introduced by First Lady of the United States Melania Trump have been accused in federal papers of planning a fraudulent operation.
Initial Launch and Price Surge
The $MELANIA tokens were made available for just a few cents each on January 19th, the day before former President Trump took office.
Alongside the Melania cryptocurrency, the former president launched his $TRUMP coin just ahead of the presidential inauguration.
Shortly after launch, the market value of the $MELANIA cryptocurrency soared to nearly $14 per unit.
Rapid Decline in Price
Yet, the price plummeted with similar speed, and currently stands at only about 10 cents – less than one percent of its highest value.
Meanwhile, the $TRUMP cryptocurrency achieved a maximum of over forty-five dollars and currently exchanges for under six dollars.
Court Claims and Investors' Arguments
The investors allege that the token's architects organized the scheme conscious that the cryptocurrency's price would crash.
Melania Trump personally is not named in the legal action. Investors indicated they do not consider she was culpable, but accused the blockchain organizations of leveraging her and other prominent figures as a facade for their illegal activities.
Trading Venue Involvement
In newly filed court papers, investors allege officials of the Meteora cryptocurrency exchange, where Melania's coin was initially traded, of setting up a operation that allowed them to secretly buy substantial volumes of the digital token.
Their accomplices then promptly liquidated these virtual tokens, earning significant gains while causing the price to plummet, according to papers submitted in federal court in Manhattan.
Wider Proceedings
The claims concerning the Melania token have been included in legal proceedings involving several other cryptocurrencies, which began in spring.
Trump-associated entities has according to reports generated more than $1 billion in pre-tax gains from several blockchain-associated ventures and firms over the past 12 months.
