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The designers behind a cryptocurrency launched by US First Lady Melania Trump have been charged in legal documents of orchestrating a pump-and-dump scheme.

Coin Release and Price Surge

The $MELANIA coins were released for a minimal price each on January 19th, just prior to former President Trump was inaugurated.

Alongside the $MELANIA coin, the former president introduced his own digital currency a few hours before the swearing-in event.

Within hours, the market value of the $MELANIA coin skyrocketed to nearly $14 per coin.

Sudden Collapse in Price

However, the market price plummeted with similar speed, and presently trades for approximately a dime – below a fraction of its maximum worth.

Meanwhile, the $TRUMP token reached a peak of nearly forty-six dollars and now trades for $5.79.

Court Claims and Investors' Arguments

The claimants claim that the currency's developers executed the maneuver aware that the digital currency's value would plummet.

Melania Trump herself is not included in the court case. Claimants clarified they do not consider she was responsible, but accused the crypto companies of using her and other familiar faces as window dressing for their fraudulent schemes.

Trading Venue Involvement

According to recently submitted court papers, investors accuse executives of the Meteora cryptocurrency exchange, where Melania's coin was initially traded, of creating a scheme that enabled them to indirectly purchase significant amounts of the digital token.

Their accomplices then rapidly offloaded these cryptocurrencies, earning significant gains while leading to the price to plummet, per records entered in federal court in Manhattan.

Broader Context

The charges concerning $MELANIA have been added to court cases concerning multiple additional cryptocurrencies, which commenced in spring.

Trump-associated entities has allegedly secured in excess of $1 billion in pre-tax earnings from several cryptocurrency-related products and companies over the previous twelve months.