Melania Trump’s cryptocurrency, $MELANIA, has become embroiled in a lawsuit alleging that its designers intentionally orchestrated a scheme to inflate and then crash the digital currency’s value. The $MELANIA coins were launched on January 19, just before Donald Trump’s inauguration as US President, and initially traded for a few cents each on the Meteora cryptocurrency exchange platform. However, within hours, the coin’s price soared to $13.73, only to collapse shortly after to around 10 cents, less than one percent of its peak value.
According to court filings in Manhattan federal court, investors accuse the Meteora executives of setting up a scheme that allowed them to indirectly purchase large quantities of $MELANIA, which were then quickly resold, resulting in substantial profits for the executives and a significant decline in the coin’s value. The plaintiffs do not believe Melania Trump to be “culpable” in the alleged scheme, but rather accuse the crypto companies of using her and other familiar faces as “window dressing” for their purported crimes.
The allegations against $MELANIA have been added to ongoing legal proceedings involving several other cryptocurrencies, which began in April. The Trump family has reportedly generated over $1 billion in pre-tax profits from various cryptocurrency-related products and companies over the past 12 months, including $TRUMP, launched by Donald Trump, and WLFI, a cryptocurrency sold by World Liberty Financial, a company founded by his three sons.
Meteora has not responded to requests for comment on the allegations. The case highlights concerns about the lack of regulation and transparency in the cryptocurrency market, which can leave investors vulnerable to fraudulent schemes. As the lawsuit progresses, it may shed more light on the inner workings of the cryptocurrency market and the role of high-profile figures in promoting digital currencies. The outcome of the case may have significant implications for the future of cryptocurrency regulation and investor protection.
