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The architects responsible for a digital token introduced by First Lady of the United States Melania Trump have been alleged in court filings of planning a fraudulent operation.

Coin Release and Price Surge

The $MELANIA cryptocurrency were made available for a minimal price each on January 19, the day before former President Trump assumed the presidency.

Together with the $MELANIA coin, Trump himself introduced his $TRUMP coin a few hours before the inauguration ceremony.

Within hours, the price of the $MELANIA coin surged to over $13 per token.

Sudden Collapse in Price

Nevertheless, the market price subsequently crashed just as rapidly, and is now only about 10 cents – below 1% of its maximum worth.

In parallel, the $TRUMP coin hit a high of nearly forty-six dollars and presently sells for $5.79.

Court Claims and Investors' Arguments

The claimants claim that the currency's developers planned the operation knowing that the cryptocurrency's price would decline sharply.

The First Lady herself is not named in the lawsuit. Claimants stated they do not consider she was at fault, but alleged the blockchain organizations of exploiting her and other prominent figures as window dressing for their illegal activities.

Trading Venue Involvement

As per fresh court papers, investors charge leaders of the Meteora cryptocurrency exchange, where $MELANIA was first exchanged, of creating a operation that allowed them to secretly buy substantial volumes of the digital token.

Associated individuals then quickly resold these virtual tokens, securing large returns while triggering the price to plummet, as stated in papers submitted in federal court in Manhattan.

Broader Context

The charges about the Melania token have been added to judicial actions regarding multiple additional virtual tokens, which started in spring.

The Trump organization has allegedly generated more than $1 billion in pre-tax earnings from multiple cryptocurrency-related products and companies over the last year.