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The developers behind a cryptocurrency introduced by US First Lady Melania Trump are now charged in federal papers of planning a fraudulent operation.

Initial Launch and Price Surge

The $MELANIA tokens were released for just a few cents each on January 19th, just prior to former President Trump assumed the presidency.

Alongside the First Lady's token, Donald Trump introduced his $TRUMP coin just ahead of the inauguration ceremony.

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

Rapid Decline in Price

Yet, the market price subsequently crashed just as rapidly, and is now only about 10 cents – under 1% of its highest value.

Meanwhile, the $TRUMP coin hit a high of nearly forty-six dollars and now trades for $5.79.

Legal Allegations and Investors' Arguments

The investors allege that the currency's developers organized the scheme aware that the cryptocurrency's price would crash.

Melania Trump herself is not named in the lawsuit. Claimants clarified they do not think she was culpable, but charged the crypto companies of exploiting her and other familiar faces as a cover for their illegal activities.

Trading Venue Role

As per fresh federal filings, claimants accuse leaders of the Meteora digital asset exchange, where Melania's coin was initially traded, of establishing a plan that allowed them to indirectly purchase large quantities of the virtual coin.

Associated individuals then promptly liquidated these digital currencies, earning significant gains while causing the market to collapse, according to documents filed in New York federal court.

Wider Proceedings

The allegations regarding the Melania token have been included in legal proceedings concerning several other digital currencies, which started in spring.

The Trump organization has according to reports generated in excess of a billion dollars in pre-tax profits from several cryptocurrency-related enterprises and organizations over the last year.