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The architects behind a digital token introduced by US First Lady Melania Trump have been charged in legal documents of executing a fraudulent operation.

Coin Release and Value Spike

The $MELANIA tokens were made available for under a dollar each on January 19th, one day preceding Donald Trump assumed the presidency.

In addition to the $MELANIA coin, the former president launched his $TRUMP coin shortly prior to the presidential inauguration.

In a matter of hours, the value of the $MELANIA token soared to $13.73 per unit.

Sudden Collapse in Price

Yet, the price plummeted with similar speed, and currently stands at only about 10 cents – less than a fraction of its maximum worth.

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

Legal Allegations and Plaintiffs' Position

The investors claim that the coin's creators organized the scheme aware that the cryptocurrency's price would plummet.

The First Lady personally is not mentioned in the legal action. Claimants indicated they do not consider she was responsible, but charged the blockchain organizations of leveraging her and other prominent figures as a facade for their illegal activities.

Exchange Platform Role

In newly filed legal documents, investors allege executives of the Meteora digital asset exchange, where the First Lady's token was originally listed, of creating a scheme that allowed them to discreetly acquire substantial volumes of the cryptocurrency.

Their accomplices then rapidly offloaded these digital currencies, earning significant gains while triggering the market to collapse, as stated in records entered in New York federal court.

Wider Proceedings

The claims regarding $MELANIA have been incorporated into legal proceedings concerning various other virtual tokens, which started in April.

The Trump organization has reportedly generated over one billion dollars in pre-tax gains from various digital currency-linked enterprises and organizations over the last year.