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The designers behind a cryptocurrency launched by First Lady of the United States Melania Trump are now alleged in federal papers of executing a pump-and-dump scheme.

Coin Release and Price Surge

The $MELANIA tokens were issued for under a dollar each on January 19, one day preceding Donald Trump took office.

In addition to the First Lady's token, Donald Trump introduced his personal token shortly prior to the swearing-in event.

In a matter of hours, the market value of the $MELANIA coin skyrocketed to nearly $14 per coin.

Sudden Collapse in Price

Nevertheless, the market price plummeted almost as quickly, and currently stands at approximately a dime – below 1% of its maximum worth.

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

Legal Allegations and Investors' Arguments

The plaintiffs claim that the token's architects planned the operation conscious that the cryptocurrency's price would decline sharply.

Mrs. Trump herself is not named in the legal action. The plaintiffs indicated they do not think she was culpable, but accused the blockchain organizations of exploiting her and other prominent figures as a facade for their illegal activities.

Exchange Platform Involvement

As per fresh federal filings, claimants allege executives of the Meteora cryptocurrency exchange, where Melania's coin was initially traded, of setting up a plan that permitted them to discreetly acquire substantial volumes of the digital token.

Their partners then rapidly offloaded these virtual tokens, earning significant gains while triggering the market to collapse, per records entered in federal court in Manhattan.

Broader Context

The charges regarding the First Lady's coin have been incorporated into court cases concerning several other cryptocurrencies, which began in April.

The Trump organization has allegedly secured more than one billion dollars in pre-tax gains from various digital currency-linked ventures and firms over the last year.