Melania Trump's Digital Currency Creators Hit with Market Manipulation Fraud Lawsuit
The architects behind a digital token released by US First Lady Melania Trump have been charged in federal papers of orchestrating a fraudulent operation.
Initial Launch and Value Spike
The $MELANIA coins were issued for under a dollar each on the 19th of January, the day before Donald Trump assumed the presidency.
In addition to the Melania cryptocurrency, Trump himself released his own digital currency a few hours before the inauguration ceremony.
Within hours, the price of the $MELANIA coin skyrocketed to $13.73 per token.
Rapid Decline in Value
Nevertheless, the price then collapsed just as rapidly, and presently trades for only about 10 cents – under a fraction of its highest value.
In parallel, the $TRUMP token achieved a maximum of $45.47 and now trades for $5.79.
Court Claims and Investors' Arguments
The plaintiffs assert that the token's architects planned the operation knowing that the digital currency's value would plummet.
Melania Trump herself is not included in the legal action. Claimants stated they do not believe she was responsible, but charged the blockchain organizations of exploiting her and other familiar faces as window dressing for their criminal operations.
Exchange Platform Role
As per fresh legal documents, plaintiffs charge officials of the Meteora cryptocurrency exchange, where the First Lady's token was initially traded, of establishing a scheme that allowed them to secretly buy substantial volumes of the virtual coin.
Their accomplices then promptly liquidated these cryptocurrencies, pocketing substantial profits while causing the market to collapse, as stated in documents filed in New York federal court.
Broader Context
The allegations about the First Lady's coin have been incorporated into legal proceedings concerning various other digital currencies, which started in the month of April.
The Trump organization has reportedly secured in excess of a billion dollars in pre-tax gains from various digital currency-linked enterprises and organizations over the last year.
