- Meteora executives allegedly orchestrated a pump-and-dump scheme using the $MELANIA token before its public release.
- Melania Trump’s name was used without liability as “window dressing” to add credibility to the token offering.
- The case is part of a wider crypto lawsuit involving multiple tokens and could influence future U.S. crypto regulations.
A legal case filed in the Southern District of New York has accused executives from the Meteora cryptocurrency exchange of orchestrating a pump-and-dump scheme involving the MELANIA token. Investors allege that these executives used the name and image of Melania Trump to attract buyers, while secretly planning to inflate and crash the token’s value for personal profit. The lawsuit claims millions in losses were caused by the alleged scheme, which centers on activities surrounding the token’s launch in January 2025.
According to the court documents submitted Tuesday, that Meteora executives acquired large quantities of $MELANIA before it went public. After accumulating tokens at a low cost, they allegedly promoted the coin to artificially raise its value. Once the token reached a high price, they reportedly sold their holdings in bulk, triggering a sharp market decline. Investors who bought during the hype say they lost substantial funds following the sudden drop.
Token Launched Day Before Trump’s Inauguration
The $MELANIA token was first debuted on January 19, 2025, one day before Donald Trump’s presidential inauguration. As per the market data, the digital asset initially traded for just a few cents but surged to $13.73 within hours.
However, the price quickly saw a drop and is currently trading around $0.09499, which is over 99% lower than its all-time high. On October 11, the token recorded another dip as it fell to a record low of $0.07554. The lawsuit emphasizes that Melania Trump is not considered legally responsible for the scheme.
Investors argue that her public image was used as a marketing tool to create trust and credibility around the token. This tactic allegedly drew in unsuspecting buyers while insiders manipulated the market behind the scenes. The court filing describes this as a “window dressing” approach, intended to add legitimacy to the offering.
Broader Legal Case Includes Multiple Tokens
The allegations regarding $MELANIA have been added to a broader legal case involving several other cryptocurrencies. This ongoing lawsuit, initiated in April, is expected to examine questionable practices used during token launches. Plaintiffs claim that these cases reflect a pattern of deceptive behavior across the cryptocurrency space.
Burwick Law, which represents the plaintiffs, stated that the outcome of the case could influence future crypto regulations. Attorney Max Burwick noted that the proceedings might help define legal standards for token disclosures and launch procedures.
Industry observers and regulators are reportedly watching the case as it progresses through federal court. Meteora has not responded publicly to the lawsuit. Separate investigations have revealed that the Trump family earned over $1 billion in profits from recent crypto ventures.
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