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The architects responsible for a cryptocurrency launched by First Lady of the United States Melania Trump are now charged in federal papers of executing a pump-and-dump scheme.

Initial Launch and Value Spike

The $MELANIA tokens were released for just a few cents each on January 19th, one day preceding former President Trump was inaugurated.

Alongside the Melania cryptocurrency, Trump himself released his personal token a few hours before the inauguration ceremony.

Shortly after launch, the value of the $MELANIA coin soared to $13.73 per coin.

Rapid Decline in Value

Nevertheless, the value subsequently crashed just as rapidly, and is now only about 10 cents – under a fraction of its highest value.

At the same time, the $TRUMP token achieved a maximum of $45.47 and presently sells for under six dollars.

Legal Allegations and Plaintiffs' Position

The claimants claim that the token's architects executed the scheme conscious that the token's worth would decline sharply.

The First Lady personally is not mentioned in the lawsuit. Claimants stated they do not consider she was responsible, but alleged the crypto companies of exploiting her and other prominent figures as a cover for their fraudulent schemes.

Trading Venue Role

In newly filed legal documents, plaintiffs charge officials of the Meteora cryptocurrency exchange, where $MELANIA was first exchanged, of creating a scheme that permitted them to secretly buy substantial volumes of the cryptocurrency.

Their partners then rapidly offloaded these cryptocurrencies, earning significant gains while causing the value to crash, according to records entered in federal court in Manhattan.

Broader Context

The charges concerning the First Lady's coin have been included in legal proceedings regarding several other cryptocurrencies, which commenced in April.

The Trump organization has reportedly secured over $1 billion in pre-tax profits from multiple cryptocurrency-related ventures and firms over the previous twelve months.