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The developers behind a cryptocurrency introduced by US First Lady Melania Trump have been alleged in legal documents of orchestrating a market manipulation plot.

Initial Launch and Price Surge

The $MELANIA coins were released for just a few cents each on the 19th of January, one day preceding Donald Trump was inaugurated.

Alongside the $MELANIA coin, Trump himself released his own digital currency a few hours before the swearing-in event.

Within hours, the market value of the $MELANIA coin skyrocketed to nearly $14 per coin.

Sudden Collapse in Price

Yet, the value plummeted with similar speed, and currently stands at only about 10 cents – under a fraction of its highest value.

In parallel, the $TRUMP cryptocurrency reached a peak of $45.47 and presently sells for $5.79.

Court Claims and Plaintiffs' Position

The investors assert that the token's architects organized the operation conscious that the cryptocurrency's price would plummet.

Mrs. Trump herself is not included in the lawsuit. The plaintiffs stated they do not consider she was at fault, but charged the digital currency firms of exploiting her and other well-known personalities as a cover for their criminal operations.

Exchange Platform Role

As per fresh court papers, plaintiffs allege leaders of the Meteora trading platform, where Melania's coin was first exchanged, of setting up a plan that permitted them to secretly buy large quantities of the digital token.

Their accomplices then promptly liquidated these digital currencies, earning significant gains while triggering the market to collapse, as stated in papers submitted in federal court in Manhattan.

Broader Context

The allegations regarding the First Lady's coin have been included in court cases involving multiple additional virtual tokens, which commenced in April.

Trump-associated entities has according to reports generated over $1 billion in pre-tax profits from multiple digital currency-linked enterprises and organizations over the last year.