$MELANIA Meme Coin Creators Charged With Fraud After Price Collapse

According to court filings unsealed on Tuesday, investors claim executives at the Meteora crypto exchange, where the coin first traded, secretly accumulated extensive holdings of $MELANIA before promoting it to retail buyers, triggering a surge and subsequent collapse.

Melania Trump is not named as a defendant, though plaintiffs argue her name and likeness were used to lend the token credibility.  

A pump-and-dump allegation  

The token debuted on 19 Jan 2025, one day before Donald Trump’s presidential inauguration, trading at only a few cents before briefly spiking to $13.73 amid online promotion. The complaint alleges that Meteroa insiders "covertly cornered" the market, selling into the rally and leaving late investors with heavy losses. 

Plaintiffs accuse Meteora of using a network of affiliated wallets to manipulate prices and liquidate tokens at inflated valuations, calling it a “fraudulent and coordinated pump-and-dump” exploiting enthusiasm around the incoming administration.  

Use of Melania’s likeness 

The suit also claims promoters “leveraged the first lady’s image to create a false impression of legitimacy.”

“This case could clarify basic expectations for token launches and disclosures in the US," said Max Burwick, senior managing partner at Burwick Law, counsel for the plaintiffs. "We understand many across the crypto industry and regulatory community are following closely.”

Broader Trump-Crypto Context

Last week, a Financial Times investigation estimated that the Trump family business has earned approximately $1bn from its crypto ventures, including stakes in stablecoins, exchanges, Bitcoin, and the $TRUMP and $MELANIA meme coins. 

Analysts suggest the two tokens generated around $427mn in profits and fees, though how those funds were distributed remains unclear

Since launch, $MELANIA has fallen more than 99%, now trading near $0.0965, according to data from CoinMarketCap.