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The architects responsible for a digital token introduced by US First Lady Melania Trump have been accused in federal papers of executing a pump-and-dump scheme.

Initial Launch and Value Spike

The $MELANIA tokens were released for under a dollar each on the 19th of January, just prior to former President Trump assumed the presidency.

Together with the $MELANIA coin, the former president released his personal token just ahead of the swearing-in event.

Within hours, the market value of the $MELANIA coin skyrocketed to over $13 per coin.

Rapid Decline in Price

However, the value plummeted with similar speed, and currently stands at approximately a dime – less than one percent of its maximum worth.

At the same time, the $TRUMP coin achieved a maximum of over forty-five dollars and presently sells for $5.79.

Legal Allegations and Investors' Arguments

The investors allege that the coin's creators planned the maneuver conscious that the digital currency's value would crash.

Melania Trump herself is not mentioned in the court case. The plaintiffs stated they do not believe she was at fault, but charged the crypto companies of using her and other well-known personalities as a cover for their fraudulent schemes.

Trading Venue Role

According to recently submitted court papers, plaintiffs accuse leaders of the Meteora digital asset exchange, where the First Lady's token was initially traded, of establishing a scheme that allowed them to secretly buy significant amounts of the virtual coin.

Their accomplices then quickly resold these virtual tokens, earning significant gains while causing the value to crash, as stated in records entered in federal court in Manhattan.

Broader Context

The claims regarding $MELANIA have been included in court cases concerning various other cryptocurrencies, which commenced in April.

Trump-associated entities has allegedly secured more than a billion dollars in pre-tax profits from several digital currency-linked products and companies over the last year.