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The architects behind a cryptocurrency released by US First Lady Melania Trump are now accused in legal documents of planning a fraudulent operation.

Coin Release and Price Surge

The $MELANIA cryptocurrency were made available for just a few cents each on January 19th, the day before Donald Trump took office.

Together with the First Lady's token, Trump himself launched his own digital currency just ahead of the inauguration ceremony.

Shortly after launch, the value of the $MELANIA cryptocurrency skyrocketed to over $13 per unit.

Sudden Collapse in Price

Yet, the market price then collapsed almost as quickly, and presently trades for less than 15 cents – less than a fraction of its maximum worth.

Meanwhile, the $TRUMP token reached a peak of over forty-five dollars and presently sells for $5.79.

Legal Allegations and Investors' Arguments

The investors assert that the coin's creators executed the maneuver knowing that the digital currency's value would crash.

Mrs. Trump herself is not mentioned in the lawsuit. Claimants clarified they do not consider she was at fault, but charged the crypto companies of leveraging her and other prominent figures as window dressing for their criminal operations.

Trading Venue Involvement

In newly filed federal filings, plaintiffs allege executives of the Meteora cryptocurrency exchange, where Melania's coin was initially traded, of establishing a scheme that enabled them to secretly buy substantial volumes of the virtual coin.

Their accomplices then rapidly offloaded these digital currencies, earning significant gains while causing the market to collapse, according to documents filed in federal court in Manhattan.

Broader Context

The claims concerning $MELANIA have been added to judicial actions regarding various other virtual tokens, which commenced in April.

Trump-associated entities has according to reports earned more than $1 billion in pre-tax gains from several cryptocurrency-related ventures and firms over the previous twelve months.