The cryptocurrency $MELANIA, launched earlier this year by U.S. First Lady Melania Trump, has become the subject of a lawsuit after investors accused its developers of orchestrating a scheme that led to the token’s dramatic crash in value shortly after its debut.
According to court documents filed on Tuesday, October 21, in the Southern District of New York, executives from the Meteora cryptocurrency exchange allegedly designed the coin’s launch to benefit themselves and their associates. The filing claims they purchased large quantities of $MELANIA tokens, artificially inflated the price, and then sold off their holdings for massive profits before the token’s value plummeted.
Initially priced at just a few cents per token when it launched on January 19—one day before Donald Trump’s inauguration—the coin’s value soared to $13.73 within hours, only to crash soon after to around $0.10, wiping out over 99% of its peak value.
Investors argue the crash was not coincidental but a deliberate “pump-and-dump” scheme, with those behind Meteora allegedly exploiting Melania Trump’s name to give the cryptocurrency a sense of legitimacy and attract unsuspecting buyers.
The new allegations were added to an ongoing lawsuit filed in April that targets several other cryptocurrencies managed by the same platform.
In their statement, plaintiffs clarified that they do not hold Melania Trump personally responsible but accused Meteora and its affiliates of using her and other prominent personalities as “window dressing” to promote fraudulent ventures.
Meteora has not yet responded to requests for comment, according to AFP.
A recent Financial Times investigation revealed that the Trump family has collectively earned over $1 billion in pre-tax profits from cryptocurrency-related projects and products over the past year.
Alongside $MELANIA, President Donald Trump launched his own coin, $TRUMP, on the same day, while his sons’ company, World Liberty Financial, recently introduced a cryptocurrency named WLFI, valued at about $550 million.
