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The architects responsible for a digital token released by US First Lady Melania Trump have been alleged in federal papers of planning a fraudulent operation.

Coin Release and Value Spike

The $MELANIA cryptocurrency were released for under a dollar each on January 19, the day before Donald Trump assumed the presidency.

Alongside the $MELANIA coin, Trump himself launched his personal token a few hours before the inauguration ceremony.

Shortly after launch, the market value of the $MELANIA cryptocurrency surged to over $13 per coin.

Sudden Collapse in Value

Nevertheless, the price then collapsed with similar speed, and is now only about 10 cents – below one percent of its highest value.

In parallel, the $TRUMP token hit a high of $45.47 and presently sells for under six dollars.

Legal Allegations and Investors' Arguments

The investors assert that the currency's developers executed the scheme knowing that the digital currency's value would decline sharply.

Melania Trump herself is not mentioned in the court case. The plaintiffs indicated they do not consider she was culpable, but alleged the blockchain organizations of using her and other well-known personalities as a cover for their criminal operations.

Trading Venue Role

In newly filed legal documents, investors accuse leaders of the Meteora cryptocurrency exchange, where $MELANIA was first exchanged, of setting up a scheme that allowed them to discreetly acquire substantial volumes of the digital token.

Their partners then promptly liquidated these cryptocurrencies, earning significant gains while causing the value to crash, per papers submitted in New York federal court.

Broader Context

The allegations concerning the First Lady's coin have been incorporated into court cases regarding several other digital currencies, which began in the month of April.

The Trump family has according to reports secured over one billion dollars in pre-tax profits from several blockchain-associated products and companies over the last year.