First Lady's Digital Currency Architects Facing Market Manipulation Scam Lawsuit
The architects responsible for a cryptocurrency released by US First Lady Melania Trump have been charged in court filings of executing a market manipulation plot.
Coin Release and Value Spike
The $MELANIA cryptocurrency were made available for a minimal price each on January 19th, one day preceding Donald Trump took office.
Alongside the First Lady's token, the former president launched his own digital currency a few hours before the swearing-in event.
Shortly after launch, the value of the $MELANIA coin skyrocketed to over $13 per token.
Sudden Collapse in Value
However, the value plummeted with similar speed, and presently trades for only about 10 cents – below a fraction of its maximum worth.
Meanwhile, the $TRUMP coin achieved a maximum of $45.47 and now trades for approximately five seventy-nine.
Court Claims and Plaintiffs' Position
The investors assert that the token's architects executed the maneuver knowing that the cryptocurrency's price would crash.
The First Lady herself is not named in the lawsuit. Investors stated they do not believe she was at fault, but alleged the digital currency firms of using her and other well-known personalities as window dressing for their illegal activities.
Trading Venue Role
As per fresh legal documents, plaintiffs allege executives of the Meteora digital asset exchange, where $MELANIA was originally listed, of creating a plan that enabled them to discreetly acquire substantial volumes of the virtual coin.
Associated individuals then rapidly offloaded these digital currencies, pocketing substantial profits while triggering the value to crash, as stated in papers submitted in federal court in Manhattan.
Wider Proceedings
The allegations regarding the Melania token have been added to legal proceedings regarding several other cryptocurrencies, which began in the month of April.
The Trump organization has reportedly earned over $1 billion in pre-tax earnings from various cryptocurrency-related ventures and firms over the previous twelve months.
